Aramco could be handing out more work in Jafurah: Oil giant Aramco signed a letter of intent (LOI) with a joint venture that includes Spanish oil engineering firm Tecnicas Reunidas and Chinese state refining giant Sinopec to develop three gas compression plants at its Jafurah gas field, according to a statement (pdf). Tecnicas Renuidas will own 60% of the joint venture, with Sinopec holding the rest.

What we know: The USD 2.2 bn project includes the installation of a 230kV power connection at the gas plant substation area and for upgrading the water pump system. It should take 44 months to complete.

REMEMBER- Aramco signed earlier this month contracts worth over USD 25 bn as it pushes deeper into natural gas. The contracts are for the development of the second phase of its Jafurah gas field and the expansion of the Kingdom’s primary natural gas pipeline. The state-owned oil giant aims to see natural gas production in 2030 be 60% higher than it was in 2021.

Why Jafurah matters: The entire Jafurah gas field — the largest unconventional, non-oil-associated gas field in the Kingdom — is set to produce 630k barrels of gas liquids and condensates per day and over 420 mn standard cubic feet of ethane per day by 2030. Jafurah is also the largest shale gas development outside the United States. It is home to an estimated 229 tn cubic feet of gas and 75 bn barrels of condensates.

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