Aramco has committed over $25 billion in contracts to advance its ambitious gas expansion strategy, targeting a substantial increase in sales gas production exceeding 60% by 2030 compared to 2021 levels.
Multi-Phase Development and Infrastructure Enhancement:
These contracts encompass phase two development of the expansive Jafurah unconventional gas field, phase three expansion of Aramco’s Master Gas System, procurement of new gas rigs, and ongoing capacity maintenance.
Aramco has awarded 16 contracts, valued at approximately $12.4 billion, to initiate phase two development at Jafurah.
This phase involves constructing gas compression facilities and associated pipelines, expanding the Jafurah Gas Plant with additional gas processing trains, and enhancing utilities, sulfur management, and export infrastructure.
NGL Fractionation Facilities in Jubail:
Additionally, this phase includes the construction of Aramco’s new Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail. These facilities will feature NGL fractionation trains, utilities, storage, and export infrastructure to process NGL received from Jafurah.
Master Gas System Expansion: Enhancing National Gas Distribution:
Another 15 lump sum turnkey contracts, amounting to around $8.8 billion, have been awarded to commence phase three expansion of the Master Gas System. This vital network delivers natural gas to consumers throughout the Kingdom of Saudi Arabia.
In collaboration with the Ministry of Energy, this expansion will enlarge the network and boost its total capacity by an additional 3.15 billion cubic feet per day (Bcfd) by 2028, through the installation of approximately 4,000 kilometers of pipelines and 17 new gas compression trains.
Additional Investments in Drilling and Infrastructure:
Aramco has also awarded 23 gas rig contracts worth $2.4 billion, along with two directional drilling contracts valued at $612 million. Additionally, 13 well tie-in contracts at Jafurah, totaling $1.63 billion, were awarded between December 2022 and May 2024.
Jafurah Field Progress and Future Potential:
The Jafurah unconventional gas field is estimated to hold 229 trillion cubic feet (Tcf) of raw gas and 75 billion Stock Tank Barrels (STB) of condensate. Phase one, initiated in November 2021, is progressing as planned, with an anticipated initial start-up in the third quarter of 2025.
Aramco projects a total lifecycle investment in Jafurah exceeding $100 billion, with production reaching a sustainable sales gas rate of 2 Bcfd by 2030, in addition to substantial volumes of ethane, NGL, and condensate.
Master Gas System Expansion: Supporting a Lower-Emission Future:
Aramco’s Master Gas System is a vast network of pipelines connecting key gas production and processing sites across Saudi Arabia. Its expansion will improve access to domestic gas supplies for industrial, utility, and other sectors, offering a lower greenhouse gas emission alternative to oil for power generation.
Pioneering Gas Utilization and Reduced Flaring:
Since 1982, this network has transported associated gas, reducing flaring and emissions. This innovation has enabled Aramco to achieve near-zero routine gas flaring and maintain a flare volume of less than 1% of total raw gas production since 2012, contributing to one of the lowest upstream carbon intensities in the industry.
CEO’s Vision for Gas as a Key Energy Source:
Amin H. Nasser, Aramco President & CEO, emphasized the company’s strong belief in the future of gas as a crucial energy source and valuable feedstock for downstream industries.
He highlighted the investments in Jafurah and the Master Gas System as indicative of Aramco’s commitment to expanding its gas business, meeting rising demand, diversifying its portfolio, creating employment opportunities, and supporting the Kingdom’s transition to a lower-emission power grid.