India's L&T Wins Fadhili Gas Project Contract

Saudi Aramco on Wednesday said it has signed four more contracts for the 50 billion riyal ($13.3 billion) Fadhili gas project.

Ten contracts have already been awarded, and on Wednesday Saudi Aramco signed four additional, major contracts with India’s Larsen & Tubro for offshore facilities , Saudi KAD for downstream, Saudi Electric Company and Engie for the combine heat & power (CHP) and Mohammed I. Al Subeae & Sons Investment Holding Company for the Fadhili residential camp.  

The new Saudi Aramco mega project will help boost production and supply with clean-burning natural gas, lessening dependence on oil for power generation. Scheduled to be completed by the end of 2019, the Fadhili gas project will become a key component of the Kingdom’s master gas system, processing gas from both onshore and offshore fields. Together, with Wasit and Midyan, Saudi Aramco’s two other new major gas projects, Fadhili will add more than 5 billion standard cubic feet per day (SCFD) of non-associated gas processing capacity. The increase in the supply of natural gas will grow above 17 billion SCFD by 2020, enabling opportunities in Saudi industries such as steel, aluminum, and downstream value-added industries, the company said.

Fadhili will process a total of 2.5 billion SCFD of non-associated gas, including 2 billion SCFD of Hasbah offshore gas and 500 million SCFD of Khursaniyah onshore gas. It is expected to produce 1.5 billion SCFD of sales gas, 4,000 metric tonne per day of Sulphur, and will supply 470 million SCFD of gas to an adjacent cogeneration power plant, which will provide Fadhili with power and steam requirements, and also supply about 1,100 megawatts of electricity to the domestic grid.

Saudi Aramco is also exploring future opportunities of environmental significance at Fadhili, which may include a helium recovery plant and a CO2 recovery unit to reduce emissions.