Saudi Aramco Awards Contracts Exceeding $25 Billion for Gas Field Development
In a monumental move, Saudi Aramco has finalized agreements for the second phase of its Jafurah gas field development and the third stage of the expansion of its master gas system, awarding contracts exceeding $25 billion.
Phase Two Development at Jafurah
The company has granted 16 agreements for phase two development at Jafurah, worth a combined total of around $12.4 billion. These agreements mark a significant step forward in the development of the largest unconventional gas field in the Middle East.
Expansion of Master Gas System
An additional 15 one-time complete contracts, worth around $8.8 billion, have been awarded to commence the phase three expansion of the master gas system. This system plays a crucial role in delivering natural gas to customers across Saudi Arabia, catalyzing industrialization, stimulating economic growth, and generating new job opportunities for Saudis.
Infrastructure Enhancement
The expansion involves adding 17 new gas compression trains and expanding the pipeline network by 4,000 km. This infrastructure enhancement will increase the network’s capacity by 3.15 billion standard cubic feet per day and extend its reach to several new cities nationwide, from Jeddah to Jizan and Al-Kharj to Sudair.
Future Energy Goals
The expansion aligns with the Kingdom’s goal to derive 50 percent of its electricity from gas by 2030, providing ample feedstock for the petrochemical sector and solidifying Saudi Arabia’s position as one of the top national gas producers in the world.
Environmental Impact and Economic Growth
In terms of environmental impact, the Kingdom’s methane emissions are noted at 0.05 percent, positioning them favorably in global methane emission rankings. Prince Abdulaziz bin Salman expressed confidence in achieving a significant reduction in the cost of energy production across various methods, with proposed moves expected to contribute about $20 billion annually to the domestic product.
Confidence in Future Expansion
Prince Abdulaziz reaffirmed Saudi Arabia’s commitment to efficient energy production and responsible environmental stewardship, emphasizing the country’s readiness to meet the 2040 goals. He assured that the next expansion in gas exploration and drilling projects is on the horizon, urging participation in buying Aramco shares for future success.