Saudi Aramco awards US$25 billion in contracts for gas expansion
The gas is primarily for the country’s domestic industries, with excess to be exported
SAUDI Aramco has awarded construction contracts worth US$25 billion for the development of its Jafurah gas project, as it looks to boost production of the fuel which is considered a key part of its plans to reduce plant-warming emissions.
The contracts awarded include US$12.4 billion for increasing the gas output at Jafurah, and US$8.8 billion for expanding the so-called master gas system, which delivers natural gas to customers around the country.
Aramco has also awarded US$2.4 billion in contracts for gas rigs.
Saudi Arabia has some of the biggest gas reserves in the world. The development of the Jafurah field, estimated to hold 200 trillion cubic feet of gas, is expected to cost US$100 billion and boost the firm’s gas production by more than 60 per cent by 2030.
“These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries,” Aramco chief executive officer Amin Nasser said in a statement on Sunday (Jun 30).
“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 to meet anticipated rising demand,” he added.
Gas from the project will be used in the first instance to supply the country’s domestic industries, with any excess capacity potentially used to make blue hydrogen or exported as liquefied natural gas, Aramco has said. BLOOMBERG
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