Aramco signs $25 billion in contracts for gas growth

DHAHRAN, July 1, 2024 – Aramco has awarded contracts worth more than USD 25 billion to further the development of the Jafurah unconventional gasfield and the national Master Gas System network, the company announced on Sunday.

16 contracts for a combined value of around USD 12.4 billion will cover the construction of gas compression facilities and associated pipelines at the Jafurah gas plant, including gas processing trains and export facilities.

An additional 15 contracts worth USD 8.8 billion are related to the third expansion phase of the Master Gas System, which delivers natural gas to customers in Saudi Arabia. The planned expansion will increase the network’s capacity by 89.2 mcm (3.15 bcf) per day by 2028 by installing around 4,000 kilometres of pipelines and 17 new gas compression trains.

Also included in the investment are 23 gas rig contracts worth USD 2.4 billion and two directional drilling contracts worth USD 612 million.

Awardees were not specified in the announcement, but Reuters named Hyundai Engineering & Construction as among them.

“These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries. The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand,” said Amin H. Nasser, Aramco’s president & CEO

The Jafurah unconventional gasfield is estimated to contain 6.5 tcm (229 tcf) of gas and 75 billion barrels of condensate. Production is scheduled to commence in Q3 2025 and Aramco expects to reach an output of 56.6 mcm (2 bcf) per day of gas by 2030.

Photo courtesy of Aramco

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