Saudi Aramco, a global energy giant, announced a significant step forward in its plan to become a major natural gas producer. The company awarded contracts valued at over $25 billion to propel its strategic gas expansion program. This initiative aims to achieve a more than 60% increase in sales gas production by 2030 compared to 2021 levels.
The awarded contracts encompass various aspects of Aramco's gas expansion strategy. A central element involves the Jafurah unconventional gas field, a vast reserve estimated to hold significant resources. Phase two of the Jafurah development received a substantial chunk of the investment, with contracts valued at around $12. 4 billion. This phase is expected to unlock further potential from the field and contribute significantly to Aramco's production targets.
Another crucial component of the expansion plan is the upgrade of Aramco's Master Gas System. Contracts worth approximately $8. 8 billion were allocated for the system's third phase expansion. This phase focuses on increasing the network's capacity by an additional 3. 15 billion standard cubic feet per day (bscfd) by 2028. The expansion will involve the installation of a vast pipeline network stretching nearly 4, 000 kilometers, along with the addition of 17 new gas compression trains. These enhancements will optimize gas delivery and support Aramco's production growth ambitions.
The investment also includes securing additional drilling capabilities. Aramco awarded contracts valued at $2. 4 billion for 23 new gas rigs. These rigs will be instrumental in accelerating well development activities, particularly within the Jafurah field. Additionally, two directional drilling contracts worth $612 million were awarded, providing specialized technology for complex well construction.
Furthermore, Aramco emphasized its commitment to ongoing capacity maintenance. Contracts totaling $1. 63 billion were awarded for 13 well tie-in projects at Jafurah between December 2022 and May 2024. These projects ensure the smooth integration of newly drilled wells into the production network, maximizing efficiency and maintaining Aramco's existing production levels.
Aramco's significant investment in gas expansion aligns with the global energy transition towards cleaner-burning fuels. Natural gas offers a less carbon-intensive alternative to traditional oil and coal, making it a crucial player in mitigating climate change. By bolstering its gas production capacity, Aramco positions itself to become a reliable supplier of this vital resource in the years to come.
This strategic move by Aramco not only strengthens its position in the global energy market but also demonstrates its commitment to a more sustainable future. The company's gas expansion program is poised to transform Aramco into a leading natural gas producer, shaping the global energy landscape for decades to come.