Saudi Aramco has announced the awarding of contracts worth more than $25 billion, marking a significant step in its strategic expansion within the gas sector. The company aims to boost its sales gas production by over 60% by 2030 compared to 2021 levels. These contracts pertain to the second phase of developing the massive Jafurah unconventional gas field, the third phase of expanding Aramco’s main gas network, new gas platforms, and ongoing maintenance of production capacity.
Amin Nasser, President and CEO of Saudi Aramco, highlighted the substantial momentum in the company’s projects and capital investments, which are integral to its growth strategy and positively impact the vitality and sustainability of the energy sector in Saudi Arabia. He emphasized that gas expansion is a crucial growth driver for the company.
“These contracts reflect our firm belief in the future of gas as a significant and growing energy source globally, as well as a vital feedstock for refining, chemicals, and marketing sectors. Our substantial investments in the Jafurah field and the third phase of our main gas network expansion underscore our commitment to enhancing our gas operations, diversifying our portfolio, and creating new job opportunities that support our ambitious national vision,” Nasser said. He added that the shift towards low-emission electricity in Saudi Arabia, where gas and renewable energy sources are gradually replacing oil and liquid fuels, will free up significant quantities of liquid fuel for export.
Nasser also acknowledged the significant role of local content and job creation for Saudis in these mega projects. He praised the extensive partnerships with suppliers and service providers for their innovation and capabilities in building and expanding world-class energy infrastructure.
He expressed gratitude for the continued support from His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, who drives energy sector growth, reliability, development, and diversification in Saudi Arabia, contributing positively to global energy supply for sustainability and prosperity.
The awarded contracts include 16 contracts valued at approximately $12.4 billion for the second phase of the Jafurah gas field project. This phase involves constructing gas compression facilities, related pipelines, and expanding the Jafurah gas plant, including gas processing units, utilities, sulfur facilities, and export facilities. The project will also see the construction of new NGL (Natural Gas Liquids) fractionation facilities at Ras Al Khair in Jubail, including storage and export facilities for NGLs produced from Jafurah.
Additionally, Aramco signed 15 contracts worth roughly $8.8 billion for the third phase of the main gas network expansion, which supplies natural gas to customers across Saudi Arabia. This expansion, in collaboration with the Ministry of Energy, will increase the network’s capacity by about 3.15 billion standard cubic feet per day by 2028 through the installation of approximately 4,000 kilometers of pipelines and 17 new gas compression units.
Furthermore, 23 additional contracts for gas platforms worth $2.4 billion were awarded, alongside two directional drilling contracts valued at $612 million. Between December 2022 and May 2024, 13 contracts worth $1.63 billion were awarded for well connections in Jafurah.
Estimates indicate that the Jafurah unconventional gas field contains resources of 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates. The first phase of the Jafurah development program, which began in November 2021, is on schedule, with initial operations expected to commence in Q3 2025.
Saudi Aramco anticipates total investment in Jafurah to exceed $100 billion over its development period, making it one of the world’s largest projects. The field is expected to achieve a sustainable sales gas production rate of 2 billion standard cubic feet per day by 2030, alongside significant quantities of ethane, NGLs, and condensates.
The main gas network, operational since 1982, connects Aramco’s key gas production and processing sites across Saudi Arabia via an extensive pipeline network. The expanded network will enhance local gas supply accessibility for industrial sectors, utilities, and other sectors in various regions and cities within the Kingdom, such as Sudair, Al-Kharj, Shuaiba, Shaqiq, and Jazan, providing a lower-emission alternative to oil for power generation.
The network, originally designed to transport associated gas emitted during oil production instead of flaring it, underscores Aramco’s innovative efforts to reduce emissions. This pioneering network has enabled Aramco to achieve near-zero routine gas flaring, maintaining a flaring rate of less than 1% of total raw gas production since 2012, bolstering its position as a low carbon intensity leader in the upstream sector.
