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Aramco’s Fadhili gas plant gets a boost: Oil giant Aramco has awarded USD 7.7 bn worth of engineering, procurement and construction (EPC) contracts to expand its Fadhili gas plant in the Eastern Province, it said in a statement yesterday. This will help increase the plant’s processing capacity to 4 bn standard cubic feet per day from 2.5 bscfd right now.
The lineup: Aramco awarded the EPC contracts to South Korea’s Samsung Engineering and GS Engineering & Construction, according to the statement. Local contractor Nesma &Partners, in which the Public Investment Fund (PIF) acquired an undisclosed stake last year, was also awarded contracts by the state-owned oil company.
Aramco aims to boost gas production by 60%: The plant’s expansion, which is expected to be completed by November 2027, will help boost Aramco’s gas production by over 60% by 2030. It is also expected to add an additional 2.3k metric tons per day to the company’s sulphur production.
Background: The Fadhili gas plant is part of Aramco’s Master Gas System (MGS), which is Saudi’s main gas pipeline that includes a network linking gas production and processing sites across the Kingdom. Aramco has for some years now been working to expand the system. The MGS now has a capacity of 12.5 bn standard cubic feet per day.
What they said: “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,” Aramco Executive Vice President of Technical Services Wail Al Jaafari said.
It’s already been an eventful year for Aramco: Aramco made a surprise announcement inJanuary that it was putting on hold its expansion plan and will target a “maximum sustained production capacity” of 12 mn barrels of oil per day. That’s about 1 mn bpd below the target of 13 mn bpd by 2027 that it had set back in 2020. It is also looking to raise its investments in liquefied natural gas (LNG), after marking its entry into the LNG business with a minority stake acquisition in MidOcean Energy last year. It is also in talks to invest in US LNG projects and was shortlisted recently by Singapore’s Temasek Holdings for the sale of its LNG trading firm subsidiary Pavilion Energy’s assets.
