By Anadolu Agency
July 1, 2024 1:24 pmSaudi Arabian oil and gas company Aramco on Sunday awarded contracts worth more than $25 billion to boost sales of gas production by over 60% by 2030, compared to 2021, in line with its strategic gas expansion plans.
The oil giant released a statement outlining its investment plans, which target 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.
The company has awarded 16 contracts worth a combined total of around $12.4 billion for phase two development at Jafurah, covering gas processing facilities, pipelines and export infrastructure and $8.8 billion to expand the Master Gas System, the national natural gas delivery network.
The expansion will raise the network’s total capacity by an additional 3.15 billion standard cubic feet per day by 2028 through the installation of around 4,000 kilometers of pipelines and 17 new gas compression trains.
A further $2.4 billion will be used for new gas rigs under 23 gas rig contracts and $612 million will be allocated to specialized drilling capabilities. Meanwhile, 13 well tie-in contracts at Jafurah, worth a total of $1.63 billion, have been awarded between December 2022 and May 2024.
The Jafurah gas field holds an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. Development is on track, with initial production expected in late 2025. Aramco’s overall $100 billion investment will unlock sustainable gas production of 2 billion cubic feet per day by 2030, along with valuable ethane, NGLs, and condensate, according to the statement.
Highlighting Aramco’s strong commitment to gas as a crucial energy source, Saudi Aramco’s President and CEO, Amin H. Nasser, said that the scale of ongoing investment at Jafurah and the expansion of the Master Gas System underscore the company’s intention to further integrate and grow its natural gas business to meet anticipated rising demand.
Nasser added that the strategic gas expansion plan has three key goals, including diversification of Aramco’s portfolio, creating new jobs and supporting Saudi Arabia’s cleaner energy future.
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