Saudi Aramco Awards $25 Billion in Contracts for Gas Expansion

Saudi Aramco has announced that it has awarded construction contracts worth $25 billion to develop its Jafurah gas project. This move is part of the company’s efforts to increase the production of gas, which is seen as crucial for reducing emissions that contribute to global warming.

The contracts include $12.4 billion for boosting gas output at Jafurah and $8.8 billion for expanding the master gas system, which distributes natural gas to customers across Saudi Arabia. Additionally, $2.4 billion has been allocated for gas rigs, according to a company statement.

Saudi Arabia is known to have some of the largest gas reserves in the world. The Jafurah field alone is estimated to contain 200 trillion cubic feet of gas. The development of this field is expected to cost $100 billion and aims to increase Aramco’s gas production by more than 60% by the year 2030.

Aramco’s CEO, Amin Nasser, emphasized the importance of these investments. “These contract awards show our strong belief in the future of gas as a key energy source and an essential material for downstream industries,” he said in a statement released on Sunday.

Nasser also highlighted the company’s commitment to expanding its gas business to meet the expected rise in demand. “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,” he added.

The gas produced from the Jafurah project will primarily be used to supply domestic industries in Saudi Arabia. Any surplus gas may be used to produce blue hydrogen or exported as liquefied natural gas (LNG), according to Aramco.