Saudi Arabian Oil Company (Saudi Aramco), the state-owned energy giant, announced the awarding of a hefty $7.7 billion contract for the significant expansion of its Fadhili Gas Plant situated in the Eastern Province. This strategic move signifies Aramco's commitment to amplifying the kingdom's natural gas production capacity.
The expansion project, entrusted to a consortium comprising Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners, centers on enhancing the plant's ability to process natural gas. By the project's projected completion date of November 2027, the Fadhili Gas Plant's daily processing capacity is anticipated to surge from 2.5 billion standard cubic feet (bscfd) to a potential of 4 billion standard cubic feet.
This amplified processing capability aligns perfectly with Aramco's ambitious gas production strategy. The company aspires to achieve a remarkable increase of over 60% in its natural gas output by 2030, benchmarked against production levels recorded in 2021.
Wail Al Jaafari, Aramco's Executive Vice President of Technical Services, emphasized the multifaceted benefits of the Fadhili Gas Plant expansion. He stated, "The awarding of these contracts embodies Aramco's resolve to bolster natural gas supplies, contribute to greenhouse gas emission reduction efforts, and liberate more crude oil for value-added refining and exportation." Highlighting the collaborative aspect of the project, Al Jaafari added, "In tandem with these leading international corporations, we are steadily advancing towards our objective of augmenting gas production."
The expansion project is anticipated to yield additional positive outcomes beyond the realm of natural gas processing. The project is also expected to contribute to a significant increase in daily sulfur production at the Fadhili Gas Plant, with projections estimating an additional 2,300 metric tons.
This substantial investment in the Fadhili Gas Plant expansion project underscores Aramco's unwavering commitment to fortifying Saudi Arabia's position as a prominent player in the global energy market. By bolstering its natural gas production capabilities, Aramco is strategically positioning itself to cater to the growing global demand for cleaner-burning energy sources. The project is also expected to create significant job opportunities and contribute to the economic development of the region.