Aramco awards $7.7bn contracts for Fadhili gas plant expansion

Saudi Aramco announced on April 2 that it had awarded engineering, procurement, and construction (EPC) contracts worth $7.7bn for the expansion of its Fadhili gas plant in the Eastern Province of Saudi Arabia. The contracts have been awarded to Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.

The primary objective of this expansion project is to increase the processing capacity of the Fadhili gas plant from 2.5 to up to 4bn ft³/day of gas. This additional processing capacity of 1.5bn ft³/day is in line with Saudi Aramco's strategy to elevate gas production by more than 60% by 2030 compared to the levels in 2021, the company stated.

“The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export,” Wail Al Jaafari, Aramco executive vice president of technical services, said. 

The Fadhili gas plant expansion project, slated to be completed by November 2027, is also anticipated to increase sulphur production by an additional 2,300 tonnes per day.

State-backed Saudi Aramco is continuing to build out its gas capabilities. In 2022, the company announced it would bring on stream the $100bn Jafurah onshore unconventional gas project in 2025. Recently, it announced an increase in reserves at the Jafurah. 

Situated east of the supergiant Ghawar oilfield, Jafurah is Saudi Arabia's largest deposit of unconventional gas.