Dhahran, Saudi Arabia (OTS/PRNewswire) – Aramco, one of the world’s leading integrated energy and chemicals companies, has awarded contracts worth more than $25 billion to advance its strategic gas expansion, which calls for an increase in gas production by more than 60% by 2030 compared to 2021 levels .
- Phase two of the ambitious Jafurah gas development begins with the award of contracts worth around $12.4 billion
- Awarded contracts worth approximately $8.8 billion for the third phase of expansion of the company’s master gas system
- 23 additional unconventional gas drilling contracts worth $2.4 billion and two directional drilling contracts worth $612 million were also awarded, while 13 Jafurah well tie-in contracts worth $1.63 billion between December 2022 and May 2024 were awarded
- The projects aim to support the growth of Aramco’s gas production, diversify the portfolio and add significant amounts of ethane, NGL and condensate.
The contracts cover the second phase of development of the giant Jafurah unconventional gas field, the third phase of the expansion of Aramco’s master gas system, new gas drilling rigs and ongoing capacity maintenance.
Amin H. Nasser, President and CEO of Aramco, said: “These orders demonstrate that we strongly believe in the future of gas as a key energy source and as an important raw material for downstream industries. The scale of our ongoing investments in Jafurah and the expansion of our master gas system underline our intention to further integrate our gas business and expand to meet expected increasing demand. This complements the diversification of our portfolio, creates new employment opportunities and supports the Kingdom’s transition to a lower-emissions electricity grid, where gas and renewable energy gradually replace liquid-based electricity generation To get to where we are today, the teams across our extensive network of suppliers and service providers who have joined Aramco on this journey to build and expand our world-class energy infrastructure have put in a lot of hard work, innovation and a strong can-do attitude. -Spirit proven.
Contract award
The company has awarded 16 contracts worth a total of around USD 12.4 billion for the second phase of development in Jafurah. The works include the construction of gas compression plants and associated pipelines, the expansion of the Jafurah gas plant including the construction of gas processing plants, as well as utility, sulfur and export plants. It also includes the construction of the company’s new Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail – including NGL fractionation plants as well as supply, storage and export facilities – to process NGL sourced from Jafurah.
An additional 15 turnkey lump sum contracts totaling approximately $8.8 billion were awarded to begin the third phase of expansion of the Master Gas System, which delivers natural gas to customers throughout the Kingdom of Saudi Arabia. The expansion, carried out in collaboration with the Department of Energy, will expand the network and increase its total capacity by an additional 3.15 billion standard cubic feet per day (bscfd) by 2028 by installing approximately 4,000 km of pipelines and 17 new gas compression trains.
In addition, 23 additional gas drilling rig contracts worth $2.4 billion and two directional drilling contracts worth $612 million were awarded. Meanwhile, 13 Jafurah well tie-in contracts worth a total of $1.63 billion were awarded between December 2022 and May 2024.
Progress in Jafurah
The Jafurah unconventional gas field is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. The first phase of the Jafurah development program, which began in November 2021, is on schedule and initial commissioning is expected in the third quarter of 2025. Aramco expects Jafurah’s total lifecycle investment to be more than $100 billion and production to reach a sustainable sales gas rate of two billion standard cubic feet per day by 2030, in addition to significant volumes of ethane, NGL and condensate.
Master gas system extension
Aramco’s Master Gas System is an extensive network of pipelines connecting Aramco’s key gas production and processing sites throughout the Kingdom of Saudi Arabia. The expansion will improve access to domestic gas supplies for customers in industry, utilities and other sectors and provide an alternative to oil for power generation with lower greenhouse gas emissions. Since 1982, the network has transported associated gas, also known as “exhaust gas”, which is released during oil production rather than being flared – an example of Aramco’s innovation and early adoption of solutions that help reduce emissions. This groundbreaking network, which now also transports associated and sales gas, has helped Aramco reduce routine gas flaring to near zero and maintain flaring levels of less than 1% of total raw gas production since 2012, contributing to The company has one of the lowest upstream carbon intensities in the industry.
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