Saudi Aramco Awards $25 Billion Contracts for Gas Expansion Projects

Saudi Aramco, a global leader in energy and chemicals, has announced the awarding of contracts exceeding $25 billion for the advancement of its strategic gas expansion initiatives. The aim is to boost sales gas production by over 60% by 2030 compared to 2021 levels.

The awarded contracts encompass the second phase development of the extensive Jafurah unconventional gas field, the third phase expansion of Aramco’s Master Gas System, new gas rigs, and ongoing capacity maintenance.

Aramco’s President & CEO, Amin H. Nasser, emphasized the significance of these contracts in positioning gas as a crucial energy source and feedstock for downstream industries. The substantial investment in Jafurah and the Master Gas System expansion underscores the company’s commitment to cater to the rising gas demand and align with the Kingdom’s transition towards a low-emission power grid.

The contracts include 16 awards for phase two development at Jafurah, totaling $12.4 billion, focusing on gas compression facilities, pipelines, gas plant expansion, and NGL fractionation facilities in Jubail. Additionally, 15 contracts worth $8.8 billion were granted for the phase three expansion of the Master Gas System, enhancing its capacity by 3.15 billion standard cubic feet per day through extensive pipeline installations and gas compression trains.

Furthermore, 23 gas rig contracts valued at $2.4 billion and two directional drilling contracts worth $612 million were awarded. Thirteen well tie-in contracts at Jafurah, totaling $1.63 billion, were also part of the recent contract approvals since December 2022.

The Jafurah gas field, boasting massive reserves of 229 trillion standard cubic feet of gas and 75 billion barrels of condensate, is set to significantly contribute to Saudi Arabia‘s gas production. The Master Gas System expansion will further bolster domestic gas supplies and provide a greener alternative to oil for power generation, supporting the company’s efforts to reduce emissions.

Noteworthy companies involved in the expansion projects include Hyundai Engineering & Construction collaborating on Jafurah and Chinese state energy giant Sinopec contributing to the main gas network expansion, showcasing the global partnerships driving Saudi Aramco’s gas sector growth.