Saudi Aramco signs SAR50 billion deals for gas processing


Saudi Arabia’s Aramco recently signed four contracts to construct Fadhili gas processing project, marking a new milestone in the company’s drive to expand gas production and supply to meet growing domestic demand for energy.

The new mega project, worth more than SAR 50 billion (US$13.33 billion), will boost production and supply with clean-burning natural gas, lessening dependence on oil for power generation, said a press release issued by Aramco.

The contracts were signed with Larsen & Tubro for Fadhili Offshore Facilities, Saudi KAD for Fadhili Downstream, Saudi Electric Company and Engie for the Fadhili Combine Heat & Power (CHP) and Mohammed I. Al Subeae & Sons Investment Holding Company for the Fadhili Residential Camp.

Scheduled to be completed by the end of 2019, the Fadhili gas project will become a key component of the Kingdom’s master gas system, processing gas from both onshore and offshore fields. Together, with Wasit and Midyan, Saudi Aramco’s two other new major gas projects, Fadhili will add more than 5 billion standard cubic feet per day (SCFD) of non-associated gas processing capacity. The increase in the supply of natural gas will grow above 17 billion SCFD by 2020.

4,500 new jobs

The plant is expected to create more than 4,500 jobs for Saudis. A dedicated training center is expected to be established in collaboration with governmental agencies focused on human resource development. The Fadhili training program, to be set up in partnership with the project contractors, will provide Saudi nationals with opportunities to gain work experience and technical skills. Besides, partner contractors will sponsor young engineers to train at their offices across the world.

Specifically, Fadhili will process a total of 2.5 billion SCFD of non-associated gas, including 2 billion SCFD of Hasbah offshore gas and 500 million SCFD of Khursaniyah onshore gas. It is expected to produce 1.5 billion SCFD of sales gas, 4,000 metric tons per day of sulphur. It will supply 470 million SCFD of gas to an adjacent co-generation power plant, which will provide Fadhili with power and steam requirements, and also supply about 1,100 megawatts of electricity to the domestic grid.

Aramco President and CEO Amin H. Nasser presided over the contact signing ceremony.

Commenting on the deals, Amin Nasser said, “Saudi Aramco’s multi-billion dollar investment in Fadhili will considerably increase the share of gas in the Kingdom’s energy mix and fits in with our long-term strategy to lower emissions. Gas will be of vital importance to the Kingdom’s ongoing industrial diversification and economic development while enabling better energy efficiency in the utility sector.

“The increased gas production will mean more feedstock for industries to expand, and new ones to emerge that will help drive job creation, a key objective of Saudi Vision 2030.”

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