Saudi Aramco Awards Over $25 Billion in Gas Sector Contracts
Dhahran, Saudi Arabia—Saudi Aramco has awarded over $25 billion in contracts. This marks a significant milestone in its strategic plan to boost gas output by over 60% by 2030, an increase from 2021’s production. The new Saudi Aramco gas contract agreements span multiple projects. These include the second phase of the Jafurah gas field development, the third phase of the main gas network expansion, new gas platforms, and drilling operations.
Expanding Gas Infrastructure and Capacity
The company signed 16 Saudi Aramco gas contracts valued at $12.4 billion for the second phase of the Jafurah unconventional gas field. This phase involves constructing gas compression units, expanding the gas plant, and building sulfur and export facilities. It also includes developing Natural Gas Liquids (NGL) fractionation facilities in Ras Al Khair and supporting storage and export infrastructure.
Another 15 contracts worth $8.8 billion were awarded for expanding Aramco’s leading gas network. This project, in collaboration with the Ministry of Energy, will increase the network’s capacity by 3.15 billion standard cubic feet per day by 2028. The expansion through these Saudi Aramco gas contracts will add approximately 4,000 kilometers of pipelines and include 17 gas compression units.
Supporting Vision 2030 Goals
Amin Nasser, President and CEO of Saudi Aramco, highlighted gas as a critical growth engine. He emphasized its importance in providing a low-emission energy source and feedstock for refining, petrochemicals, and marketing. “These contracts reflect our strong belief in the global role of gas and its growing demand,” he said. He added that replacing liquid fuels with gas and renewables in domestic electricity generation will free up oil for export. Additionally, it will enhance energy efficiency.
In addition, 23 contracts worth $2.4 billion were awarded for new gas platforms, two drilling contracts worth $612 million were signed, and 13 well connection Saudi Aramco gas contracts worth $1.63 billion were signed between December 2022 and May 2024.
Jafurah to Become a Global Gas Hub
Jafurah holds an estimated 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates, positioning it among the world’s most significant gas projects. Saudi Aramco plans to invest over $100 billion in its development. The company aims to begin initial operations in Q3 2025 and ramp production to 2 billion standard cubic feet of sales gas per day by 2030.
Minimizing Emissions, Maximizing Efficiency
Since 1982, Aramco’s leading gas network has been pivotal in transporting associated gas and reducing flaring. Since 2012, Aramco has kept routine gas flaring below 1%, reinforcing its status as a leader in low-carbon upstream operations.
The expanded network will improve gas accessibility for industrial regions such as Sudair, Al-Kharj, Shuaiba, Shaqiq, and Jazan. This supports Saudi Arabia’s shift toward cleaner energy and a diversified economy under Vision 2030.
