(CTN News) – The largest oil exporting company in the world, Saudi Aramco, has given contracts worth over $25 billion to further its strategic gas expansion plan. The goal of the plan is to surpass the levels reached in 2021 in terms of sales gas output by more than sixty percent by 2030.
According to a statement issued by the company on Sunday, the contracts are related to the second phase of development of the massive Jafurah unconventional gasfield, the third phase of Aramco’s Master Gas System expansion, the building of new gas rigs, and the continuous maintenance of capacity.
The company’s president and CEO, Amin Nasser, said, “These contract awards are a testament to our unwavering confidence in the future of gas as a critical energy source and a critical feedstock for downstream industries.” “Gas is still an important source of energy.”
The scope of our continued investments at Jafurah and the expansion of our Master Gas System demonstrate our desire to further integrate and grow our gas company in order to meet the expected rise in demand. To complete phase two of development at Jafurah,
Aramco has given out 16 contracts worth $12.4 billion.
Along with expanding the Jafurah Gas Plant to include gas processing trains, utilities, a sulfur factory, and export facilities, the work also includes building pipelines and compression facilities for gas.
Building additional Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail is another aspect of the idea. These facilities’ main function is to process NGL from Jafurah. NGL fractionation trains, utilities, storage facilities, and export facilities will be included.
The company granted fifteen more turnkey contracts worth over $8.8 billion in order to enable the third stage of Master Gas System growth. This system is in charge of supplying natural gas to consumers all over Saudi Arabia.
The extension project is working in tandem with the ministry of energy, and its goal is to boost the network’s capacity by 3.15 billion standard cubic feet per day by the year 2028. It will be necessary to install almost 4,000 kilometers of pipelines and seventeen new gas compression trains in order to achieve this.
Furthermore, during this time, contracts for gas platforms valued at $2.4 billion and directional drilling valued at $612 million were issued. In the interim, 13 well tie-ins at Jafurah between December 2022 and May 2024 had contracts worth a combined $1.63 billion awarded.
According to Aramco, 229 trillion standard cubic feet of natural gas and 75 billion stock tank barrels of condensate are expected to be present in the unconventional gasfield known as Jafurah. The first phase of the Jafurah development program started in November 2021, and after it’s finished, operations are expected to start in the third quarter of 2025.
Over the course of the project, Aramco believes that the total investment in the Jafurah will surpass one hundred billion dollars. By 2030, production should have produced large amounts of condensate, ethane, and natural gas liquids in addition to a sustainable sales gas rate of two billion standard cubic feet per day.
Aramco owns and operates the Master Gas System.
A massive pipeline network that links important gas production and processing facilities across Saudi Arabia.
According to Aramco, this development would improve domestic gas supply availability for utilities, industry, and other sectors. This will provide a cleaner substitute for oil in the production of electricity, lowering greenhouse gas emissions.
As the globe rapidly progresses toward a future with decreased carbon emissions and adherence to sustainable development goals, the energy business is moving to cleaner and more ecologically responsible forms of energy.
Saudi Aramco joined the programs and promised in 2021 to attain net-zero carbon emissions by 2050. Shortly after Saudi Arabia, the biggest economy in the Arab world, announced that it will aim to achieve carbon neutrality by 2060, this declaration was made.
On the other hand, Mr. Nasser said that gas and oil will remain components of the energy balance “for decades to come,” meaning that investment in the industry is required.
Source: XM
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