In a significant move to enhance its gas production capabilities, Aramco, a global leader in integrated energy and chemical industries, announced on Tuesday the awarding of engineering, procurement, and construction (EPC) contracts totaling $7.7 billion. This investment is aimed at expanding the Fadhili Gas Plant located in Saudi Arabia's Eastern Province, marking a pivotal step in the company’s ambitious strategy.
The expansion project will significantly increase the plant’s processing capacity from its current 2.5 billion standard cubic feet per day (bscfd) to an impressive 4 bscfd. The EPC contracts have been awarded to three prominent companies: Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners, positioning the project for a successful execution phase.
This strategic enhancement is projected to add an additional 1.5 bscfd of raw gas processing capacity, underlining Aramco's commitment to increasing gas production by over 60% by the year 2030, relative to its 2021 levels. The move is not only aimed at bolstering the company’s gas output but also aligns with global efforts to mitigate greenhouse gas emissions. By increasing the availability of natural gas, Aramco aims to reduce reliance on crude oil for energy, thereby facilitating more crude oil to be refined and exported for value-added purposes.
Slated for completion by November 2027, the Fadhili Gas Plant expansion is also expected to increase sulphur production by 2,300 metric tons per day, contributing to the company’s broader objectives in the energy sector.
Wail Al Jaafari, Aramco’s Executive Vice President of Technical Services, highlighted the project's alignment with the company's environmental and strategic goals. “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,” Al Jaafari stated.
He further emphasized the project’s role in advancing Aramco’s ambitions towards developing a sustainable hydrogen business and supporting the petrochemical industry with essential feedstock from associated gas liquids.
This expansion is a testament to Aramco’s proactive approach in partnering with leading international firms to achieve its vision of increased gas production and environmental stewardship, marking a significant milestone in the energy sector’s journey towards a more sustainable and efficient future.
