Aramco Awards More Than $25B in Contracts for Gas Expansion Projects
A major portion of the contracts, approximately $21.2 billion, is allocated toward phase-two development at Jafurah and phase-three expansion of the Master Gas System.
Targeting sales gas production growth of more than 60% by 2030, Aramco granted contracts worth over $25 billion to accelerate its strategic gas expansion projects—the Jafurah unconventional gas field, the Master Gas System, new gas rigs, and ongoing capacity maintenance. These projects will support the growth of Aramco’s gas, ethane, natural gas liquids (NGL), and condensate production.
“These contract awards demonstrate our belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries,” said Amin H. Nasser, Aramco President & CEO. “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."
Signing ceremony for Master Gas System III; Image Credits: Aramco
Aramco awarded 16 contracts for phase-two Jafurah development valued at approximately $12.4 billion. Development work involves the construction of gas compression facilities and pipelines and expansions of the Jafurah Gas Plant, including gas processing trains and utilities, sulfur, and export facilities. The work also includes the construction of Riyas NGL fractionation facilities in Jubail—NGL fractionation trains and utilities, storage, and export facilities will process NGL received from Jafurah.
Fifteen lump-sum turnkey contracts were awarded for phase-three expansion of Aramco’s Master Gas System, valued at approximately $8.8 billion. The expansion increases the network’s size and will raise total capacity by 3.15 billion standard cubic feet per day by 2028. Capacity buildout will be supported by installing approximately 4,000 km of pipelines and 17 gas compression trains.
In addition, Aramco granted 23 gas rig contracts worth $2.4 billion and two directional drilling contracts valued at $612 million. Between December 2022 and May 2024, the company awarded 13 well tie-in contracts for Jafurah worth $1.63 billion.
In June 2024, Aramco and Sempra executed a non-binding heads of agreement (HoA) for the offtake of 5 million tons per annum of LNG over a 20-year term from the Port Arthur LNG Phase 2 expansion project in the Texas Gulf Coast. The HoA considers Aramco’s 25% stake in project-level equity for Phase 2. The partners expect to sign a binding LNG sale and purchase agreement with equity terms similar to those outlined in the HoA.
At the beginning of April, Aramco granted engineering, procurement, and construction (EPC) contracts worth $7.7 billion to SAMSUNG Engineering Company, GS Engineering & Construction Corp., and Nesma & Partners for a major expansion of its Fadhili Gas Plant in eastern Saudi Arabia—the Fadhili Gas Plant Increment Project. The increase in the plant’s processing capacity, from 2.5 to up to 4 billion standard cubic feet per day, will help the company reach its goal to increase gas production by more than 60% by 2030 in comparison to 2021 levels.
The Fadhili Gas Plant expansion is slated for completion by November 2027 and is expected to add an extra 2,300 metric tons per day to sulfur production.
