OIL - Aramco's strategic gas expansion progresses with $25bn contract awards | Benzinga
- Phase two of ambitious Jafurah gas development commences with award of contracts worth around $12.4bn
- Contracts worth around $8.8bn awarded for phase three expansion of Company's Master Gas System
- 23 additional unconventional gas rig contracts valued at $2.4bn and two directional drilling contracts worth $612 million also awarded, while 13 well tie-in contracts at Jafurah worth $1.63bn have been awarded between December 2022 and May 2024
- Projects aim to support growth of Aramco's gas production, diversify its portfolio, and add significant volumes of ethane, NGL and condensate
DHAHRAN, Saudi Arabia, June 30, 2024 /PRNewswire/ -- Aramco, one of the world's leading integrated energy and chemicals companies, has awarded contracts worth more than $25 billion to progress its strategic gas expansion, which targets sales gas production growth of more than 60% by 2030, compared to 2021 levels.
The contracts relate to phase two development of the vast Jafurah unconventional gas field, phase three expansion of Aramco's Master Gas System, new gas rigs and ongoing capacity maintenance.
Amin H. Nasser, Aramco President & CEO, said: "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. This complements the diversification of our portfolio, creates new employment opportunities, and supports the Kingdom's transition towards a lower-emission power grid, in which gas and renewables gradually displace liquids-based power generation. To get where we are today, a lot of hard work, innovation and a strong 'can do' spirit has been demonstrated by teams across our vast network of suppliers and service providers, who have joined Aramco on this journey to build and expand our world-class energy infrastructure."
Contract awards
The Company has awarded 16 contracts, worth a combined total of around $12.4 billion, for phase two development at Jafurah. The work will involve construction of gas compression facilities and associated pipelines, expansion of the Jafurah Gas Plant including construction of gas processing trains, and utilities, sulfur and export facilities. It will also involve construction of the Company's new Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail — including NGL fractionation trains, and utilities, storage and export facilities — to process NGL received from Jafurah.
Another 15 lump sum turnkey contracts, worth a ...