- 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 combined total of
around $8.8 billion, have been
awarded to commence the phase three expansion of the Master Gas
System, which delivers natural gas to customers across the
Kingdom of Saudi Arabia. The
expansion, being conducted in collaboration with the Ministry of
Energy, will increase the size of the network and raise its total
capacity by an additional 3.15 billion standard cubic feet per day
(bscfd) by 2028, through the installation of around 4,000km of
pipelines and 17 new gas compression trains.
An additional 23 gas rig contracts worth $2.4bn have also been awarded, along with two
directional drilling contracts worth $612
million. Meanwhile, 13 well tie-in contracts at Jafurah,
worth a total of $1.63bn, have been
awarded between December 2022 and
May 2024.
Progress at Jafurah
The Jafurah unconventional gas field is estimated to contain 229
trillion standard cubic feet of raw gas and 75 billion Stock Tank
Barrels of condensate. Phase one of the Jafurah development
program, which commenced in November
2021, is progressing on schedule with initial start-up
anticipated in the third quarter of 2025. Aramco expects total
overall lifecycle investment at Jafurah to exceed $100 billion and production to reach a
sustainable sales gas rate of two billion standard cubic feet per
day by 2030, in addition to significant volumes of ethane, NGL and
condensate.
Master Gas System expansion
Aramco's Master Gas System is an extensive network of pipelines
that connects Aramco's key gas production and processing sites
throughout the Kingdom of Saudi
Arabia. Its expansion will increase access to domestic gas
supplies for customers in the industrial, utility and other sectors
— providing a lower greenhouse gas emission alternative to oil for
power generation. From 1982, the network transported associated
gas, also known as "waste gas" released during oil production,
instead of being flared — illustrating Aramco's innovation and
early adoption of solutions that help mitigate emissions. This
pioneering network, which now transports associated gas and sales
gas, has helped Aramco achieve near-zero routine gas flaring and
maintain a flare volume of less than 1% of total raw gas production
since 2012, contributing to the Company having one of the lowest
upstream carbon intensities in the industry.
Aramco Contact Information
@aramco
About Aramco
As one of the world's leading integrated energy and chemicals
companies, our global team is dedicated to creating impact in all
that we do, from providing crucial oil supplies to developing new
energy technologies. We focus on making our resources more
dependable, more sustainable and more useful, helping to promote
growth and productivity around the world.
https://www.aramco.com
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SOURCE Aramco