Aramco has announced the awarding of contracts exceeding $25 billion as part of its strategic plan to expand gas production by over 60 percent by 2030 compared to 2021 levels.
Aramco said these contracts are a significant step forward in the second phase of the development of the Jafurah unconventional gas field, the third phase of Aramco’s Master Gas System expansion, and the commissioning of new gas rigs and ongoing capacity maintenance.
Strategic Investments and Contract Details
Aramco President & CEO, Amin H. Nasser, highlighted the importance of these developments: “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.”
For the second phase of the Jafurah gas field development, 16 contracts valued at approximately $12.4 billion have been awarded. This phase includes the construction of gas compression facilities, associated pipelines, the expansion of the Jafurah Gas Plant, and the development of the Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail.
The third phase of the Master Gas System expansion has seen 15 lump sum turnkey contracts awarded, worth a combined total of around $8.8 billion. This expansion aims to increase the network’s capacity by an additional 3.15 billion standard cubic feet per day by 2028, with the installation of approximately 4,000 km of pipelines and 17 new gas compression trains.
Further investments include 23 gas rig contracts worth $2.4 billion, two directional drilling contracts valued at $612 million, and 13 well tie-in contracts at Jafurah worth a total of $1.63 billion awarded between December 2022 and May 2024.
Progress and Future Outlook 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. The first phase of development, which began in November 2021, is on track with initial start-up expected in the third quarter of 2025.
Aramco anticipates the total lifecycle investment at Jafurah to surpass $100 billion, aiming for a sustainable sales gas production rate of two billion standard cubic feet per day by 2030, along with significant volumes of ethane, NGL, and condensate.
Master Gas System Expansion
The Master Gas System is a network of pipelines connecting Aramco’s key gas production and processing sites across Saudi Arabia. The planned expansion will increase access to domestic gas supplies for industrial, utility, and other sectors, offering a lower greenhouse gas emission alternative to oil for power generation. Since 1982, the system has transported associated gas, reducing flaring and mitigating emissions. This network has helped Aramco achieve near-zero routine gas flaring and maintain a flare volume of less than 1 percent of total raw gas production since 2012, underscoring the company’s commitment to low carbon intensity in its operations.