Part two of bold Jafurah gasoline improvement commences with award of contracts value round $12.4bn
Contracts value round $8.8bn awarded for part three enlargement of Firm’s Grasp Gasoline System
23 further unconventional gasoline rig contracts valued at $2.4bn and two directional drilling contracts value $612 million additionally awarded, whereas 13 nicely tie-in contracts at Jafurah value $1.63bn have been awarded between December 2022 and Might 2024
Initiatives intention to assist progress of Aramco’s gasoline manufacturing, diversify its portfolio, and add important volumes of ethane, NGL and condensate
Aramco, one of many world’s main built-in power and chemical substances corporations, has awarded contracts value greater than $25 billion to progress its strategic gasoline enlargement, which targets gross sales gasoline manufacturing progress of greater than 60% by 2030, in comparison with 2021 ranges.
The contracts relate to part two improvement of the huge Jafurah unconventional gasoline discipline, part three enlargement of Aramco’s Grasp Gasoline System, new gasoline rigs and ongoing capability upkeep.
Amin H. Nasser, Aramco President & CEO, mentioned: “These contract awards show our agency perception in the way forward for gasoline as an necessary power supply, in addition to an important feedstock for downstream industries. The dimensions of our ongoing funding at Jafurah and the enlargement of our Grasp Gasoline System underscores our intention to additional combine and develop our gasoline enterprise to satisfy anticipated rising demand. This enhances the diversification of our portfolio, creates new employment alternatives, and helps the Kingdom’s transition in direction of a lower-emission energy grid, during which gasoline and renewables regularly displace liquids-based energy technology. To get the place we’re at this time, loads of arduous work, innovation and a robust ‘can do’ spirit has been demonstrated by groups throughout our huge community of suppliers and repair suppliers, who’ve joined Aramco on this journey to construct and increase our world-class power infrastructure.”
Contract awards
The Firm has awarded 16 contracts, value a mixed whole of round $12.4 billion, for part two improvement at Jafurah. The work will contain development of gasoline compression amenities and related pipelines, enlargement of the Jafurah Gasoline Plant together with development of gasoline processing trains, and utilities, sulfur and export amenities. It’ll additionally contain development of the Firm’s new Riyas Pure Gasoline Liquids (NGL) fractionation amenities in Jubail — together with NGL fractionation trains, and utilities, storage and export amenities — to course of NGL acquired from Jafurah.
One other 15 lump sum turnkey contracts, value a mixed whole of round $8.8 billion, have been awarded to begin the part three enlargement of the Grasp Gasoline System, which delivers pure gasoline to clients throughout the Kingdom of Saudi Arabia. The enlargement, being carried out in collaboration with the Ministry of Vitality, will enhance the scale of the community and lift its whole capability by an extra 3.15 billion commonplace cubic toes per day (bscfd) by 2028, by means of the set up of round 4,000km of pipelines and 17 new gasoline compression trains.
An extra 23 gasoline rig contracts value $2.4bn have additionally been awarded, together with two directional drilling contracts value $612 million. In the meantime, 13 nicely tie-in contracts at Jafurah, value a complete of $1.63bn, have been awarded between December 2022 and Might 2024.
Progress at Jafurah
The Jafurah unconventional gasoline discipline is estimated to comprise 229 trillion commonplace cubic toes of uncooked gasoline and 75 billion Inventory Tank Barrels of condensate. Part one of many Jafurah improvement program, which commenced in November 2021, is progressing on schedule with preliminary start-up anticipated within the third quarter of 2025. Aramco expects whole general lifecycle funding at Jafurah to exceed $100 billion and manufacturing to succeed in a sustainable gross sales gasoline price of two billion commonplace cubic toes per day by 2030, along with important volumes of ethane, NGL and condensate.
Grasp Gasoline System enlargement
Aramco’s Grasp Gasoline System is an intensive community of pipelines that connects Aramco’s key gasoline manufacturing and processing websites all through the Kingdom of Saudi Arabia. Its enlargement will enhance entry to home gasoline provides for purchasers within the industrial, utility and different sectors — offering a decrease greenhouse gasoline emission different to grease for energy technology. From 1982, the community transported related gasoline, also referred to as “waste gasoline” launched throughout oil manufacturing, as an alternative of being flared — illustrating Aramco’s innovation and early adoption of options that assist mitigate emissions. This pioneering community, which now transports related gasoline and gross sales gasoline, has helped Aramco obtain near-zero routine gasoline flaring and keep a flare quantity of lower than 1% of whole uncooked gasoline manufacturing since 2012, contributing to the Firm having one of many lowest upstream carbon intensities within the trade.