Aramco awards $7.7 billion contracts to add 1.5 bscfd of raw gas to Fadhili Gas Plant

Aramco, one of the world’s leading integrated energy and chemicals companies, on Tuesday awarded engineering, procurement and construction (EPC) contracts worth $7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia.

The project is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd), Aramco said in a statement. The EPC contracts for the increment project were awarded to Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.

The additional 1.5 bscfd of processing capacity is expected to contribute to the company’s strategy to raise gas production by more than 60% by 2030, compared to 2021 levels. The Fadhili Gas Plant expansion, which is expected to be completed by November 2027, is also expected to add an additional 2,300 metric tons per day to sulphur production, Aramco 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,” Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said.

“Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry,” he added.