Saudi Aramco invests USD7.7B to enlarge Fadhili gas plant
(MENAFN) Saudi Aramco, the state-owned oil company, has announced contracts worth USD7.7 billion aimed at expanding the gas processing capacity of the Al-Fadhili gas plant in Saudi Arabia. The ambitious expansion project seeks to increase the plant's processing capacity from its current 2.5 billion standard cubic feet per day to an impressive four billion standard cubic feet per day. Anticipated to be completed by November 2027, the expansion initiative underscores Saudi Aramco's commitment to bolstering its gas production capabilities.
The engineering, procurement, and construction contracts for the project have been awarded to prominent firms, including South Korea's Samsung Engineering, GS Engineering and Construction, and Nesma & Partners. Notably, Nesma & Partners saw investment from the Saudi sovereign wealth fund last year, signaling a strategic partnership in advancing Saudi Arabia's energy infrastructure.
This expansion aligns with Saudi Aramco's ambitious strategy to increase its gas production by more than 60 percent by 2030, relative to 2021 levels. In addition to enhancing gas output, the expanded facility is expected to significantly augment sulfur production, adding an extra 2,300 metric tons per day to the plant's output.
The decision to ramp up gas processing capacity comes amid broader shifts in Saudi Arabia's energy landscape. In January, the Kingdom directed Saudi Aramco to revise its oil production capacity target, reducing it from 13 million barrels per day to 12 million barrels per day. Concurrently, Saudi Arabia is actively pursuing the development of its unconventional gas reserves, employing advanced extraction methods akin to those utilized in the shale gas sector. These efforts underscore the Kingdom's commitment to diversifying its energy portfolio and maximizing the potential of its natural resources to meet growing domestic and global demand.
MENAFN03042024000045015682ID1108052833
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.