Saudi Aramco has signed contracts worth over $25 billion to advance the Jafurah gas field and expand its main gas network. This significant move aims to enhance Saudi Arabia’s standing as a leader in unconventional gas production.
The contracts encompass the second phase of the Jafurah field’s development and the third phase of the main gas network’s expansion. During the contract award ceremony in Dhahran, Aramco CEO Amin Nasser highlighted the importance of these projects. “By generating an anticipated 2 billion standard cubic feet per day of sales gas by 2030, this initiative will strengthen Saudi Arabia’s position as one of the top national gas producers in the world,” Nasser said.
Jafurah, the kingdom’s largest unconventional non-oil associated gas field, has reserves estimated at 229 trillion cubic feet of gas and 75 billion barrels of condensates. The development of this field, which uses advanced extraction techniques similar to those in the U.S. shale gas industry, underscores Saudi Arabia’s commitment to cutting-edge technology in energy production.
The expansion of the main gas network will add 4,000 kilometers of pipelines, increasing capacity by about 3.2 billion standard cubic feet per day. This will connect additional cities across the country, improving energy infrastructure and distribution.
Hyundai Engineering & Construction leads a consortium awarded contracts for the Jafurah expansion, while Sinopec, a Chinese state energy giant, is among the firms involved in the main gas network expansion. These international collaborations highlight the global interest and investment in Saudi Arabia’s energy sector.
This investment supports Saudi Arabia’s strategy to diversify its energy resources and reduce dependence on oil. By developing its unconventional gas reserves, the kingdom aims to meet future energy demands and contribute to global energy stability.
The projects in Jafurah and the main gas network mark a pivotal moment in Saudi Arabia’s energy development, reinforcing its role in the global energy market.
Photo source: Google
By: Montel Kamau
Serrari Financial Analyst
1st July, 2024
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