Saudi Aramco Awards $12.4 Billion in Contracts for Jafurah Gas Field Expansion
Saudi Aramco announced on Sunday the awarding of 16 contracts worth approximately $12.4 billion for the second phase of developing Jafurah, the kingdom’s largest unconventional gas field. The contracts encompass the construction of gas compression facilities, related pipelines, and the expansion of the Jafurah Gas Plant, which will include new gas processing trains, utilities, sulfur, and export facilities.
The statement from the energy giant also mentioned the construction of the new Riyas natural gas liquids (NGL) fractionation facilities in Jubail to handle NGL from Jafurah. However, Aramco did not specify the contractors or the timeline for these agreements.
Additionally, Aramco has signed 15 lump-sum turnkey contracts valued at $8.8 billion to build 4,000 kilometers of pipelines and 17 new gas compression trains by 2028. These contracts are part of expanding the Master Gas System, a significant energy project that the company is undertaking in collaboration with the Ministry of Energy.
Together with 23 gas rig contracts, two drilling contracts, and 13 well tie-in contracts at Jafurah, Aramco’s efforts amount to an investment exceeding $25 billion. These investments aim to boost sales gas production by over 60% by 2030, compared to 2021 levels.
The Jafurah field, holding an estimated 200 trillion standard cubic feet of natural gas, is the largest liquid-rich shale gas play in the Middle East. Aramco anticipates commissioning the field by 2030, with production targets set at over 420 million standard cubic feet of ethane and around 630,000 barrels of NGL and condensates per day.
