Saudi Aramco has signed contracts worth more than $25 billion to advance its strategic gas expansion, of its Jafurah gas field and the third phase of expanding its main gas network, Aramco’s CEO, Amir Nasser revealed on Sunday.
The expansion, 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.
So far, Aramco has awarded 16 contracts, worth a combined total of around $12.4 billion, for phase two development at 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.
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.”
Saudi Arabia is working on developing its unconventional gas reserves, which require advanced extraction methods such as those used in the shale gas industry.
Jafurah is the kingdom’s largest unconventional non-oil associated gas field and is potentially the biggest shale gas development outside the United States, with reserves reaching 229 trillion cubic feet of gas and 75 billion barrels of condensates.
