Aramco Invests $25 Billion in Massive Gas Expansion Project

Saudi Arabia’s state-owned oil giant, Aramco, is embarking on an ambitious project to significantly expand its natural gas production capacity. To achieve this, the company awarded contracts exceeding $25 billion, targeting a 60% increase in sales gas production by 2030 compared to 2021 levels.

Aramco Gas Contracts: Fueling Growth with Sustainability in Mind

Aramco’s President and CEO, Amin H. Nasser, championed natural gas as a critical future energy source and a key feedstock for downstream industries. He highlighted the substantial investments in the Jafurah gas field and the Master Gas System expansion as proof of Aramco’s commitment to growing its gas business and meeting the rising demand for cleaner energy.

This strategic move aligns perfectly with Aramco’s goals of diversifying its portfolio, creating jobs, and supporting the Kingdom’s transition to a lower-emission power grid. Natural gas, alongside renewable energy sources, is positioned to gradually replace liquid fuels for power generation, ultimately leading to a cleaner energy mix for Saudi Arabia.

Jafurah Gas Field Development: A Cornerstone of Expansion

The awarded contracts encompass various aspects of the Jafurah project, including:

• Phase Two Development: This phase focuses on constructing gas compression facilities, pipelines, and expanding the Jafurah Gas Plant. Additionally, a new Riyas Natural Gas Liquids (NGL) fractionation facility will be built in Jubail to process NGLs extracted from Jafurah.
• Master Gas System Expansion: Aramco is collaborating with the Ministry of Energy to expand the network’s capacity by a significant 3.15 billion standard cubic feet per day (bscfd) by 2028. The expansion entails installing 4,000 kilometers of pipelines and 17 new gas compression trains.

The Jafurah unconventional gas field boasts vast potential, estimated to contain a staggering 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. Phase one of the development program is already underway, with an anticipated initial start-up in the third quarter of 2025.

A Pioneering Legacy in Gas Production

Aramco’s Master Gas System, operational since 1982, has played a crucial role in capturing and utilizing associated gas. This practice minimizes flaring and reduces emissions, making Aramco a leader in responsible gas production. Notably, the network contributes to one of the lowest upstream carbon intensities in the industry.

Looking Ahead: A Brighter Energy Future

Aramco is targeting an ambitious goal: a sustainable sales gas rate of two billion standard cubic feet per day for the Jafurah project by 2030. Alongside this, they expect to produce significant volumes of ethane, NGLs, and condensate. Their overall investment in Jafurah is projected to surpass $100 billion. Expanding the Master Gas System will further boost domestic gas access for various sectors, offering a cleaner alternative to oil for power generation. This ambitious undertaking positions Aramco as a leader in shaping a more sustainable energy future for Saudi Arabia.

Also Read: Saudi Aramco Plans $10 Billion Share Offering on Saudi Bourse