Saudi Arabia Is Investing Heavily to Meet Rising Demand for Gas
By Simon West and Luke King
Aramco has signed contracts worth more than US$25 billion for a series of natural gas projects, as the Saudi state energy giant targets sales gas production growth of more than 60% by the end of the decade compared with 2021 levels.
The contracts pertain to the second phase of the development of the Jafurah gas field in Saudi’s Eastern Province, the third phase of expanding the kingdom’s main gas network, new gas rigs and ongoing capacity maintenance.
Some 16 contracts worth a combined US$12.4 billion were awarded for work at Jafurah, a 17,000 square kilometer unconventional gas field described by Aramco as one of its “most ambitious projects” to date.
Containing an estimated 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates, Jafurah is the Middle East’s largest liquid-rich shale gas reserve and, according to Aramco, presents “a unique opportunity to build a large-scale project that aims to contribute to the energy transition”.
The latest round of work involves the construction of gas compression facilities and associated pipelines, expansion of the Jafurah Gas Plant to include new gas processing trains, and utilities, sulfur and export facilities.
Almajdouie Logistics has been involved in the transport of project cargo to the gas plant.
The work also calls for the building of Aramco’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.
The first phase of the Jafurah project began in late-2021 and is expected to start initial operations in the third quarter of 2025.
Another 15 lump sum turnkey contracts worth a combined US$8.8 billion have been awarded for the expansion of the Master Gas System, a gas network system that delivers fuel to homes throughout the kingdom. Some 4,000 kilometers of additional pipelines and 17 new gas compression trains will be installed to boost capacity by 3.15 billion cubic feet by 2028.
“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,” said Amin H. Nasser, president and CEO of Aramco.
Saudi Aramco is a member of the Breakbulk Global Shipper Network. The next in-person meet-ups for BGSN members will be at Breakbulk Americas 2024 on 15-17 October at the George R. Brown Convention Center in Houston.
TOP PHOTO: Aramco's Jafurah natural gas facilities in Saudi's Eastern Province, CREDIT: Aramco
