Saudi Aramco’s Jafurah unconventional gas project is attracting global attention as at least three international contracting heavyweights prepare to compete for a multibillion-dollar deal for its further expansion.
This project, which has already garnered an estimated investment of over $100 billion, is expected to play a role in Saudi Arabia’s strategy to enhance its natural gas production and diversify its energy portfolio.
Bidders are lining up to submit offers later this year for a key tender that involves the compression facilities for the fourth phase of the Jafurah project.
Among the companies reportedly preparing bids are a consortium of Spain’s Tecnicas Reunidas and China’s Sinopec, India’s Larsen & Toubro (L&T), and the China Petroleum Engineering and Construction Corporation (CPECC).
These competitive bids show the project’s attractiveness and its importance for both Saudi Arabia and global energy markets.
The Jafurah unconventional gas field was approved for development in early 2020 as part of Saudi Arabia’s Vision 2030 plan, aimed at diversifying the Kingdom’s economy and reducing its reliance on oil revenues.
With an expected lifecycle investment exceeding $100 billion, the Jafurah project is set to significantly increase Saudi Arabia’s gas production capacity.
By the end of this decade, Aramco anticipates daily production from the field will reach around two billion cubic feet, alongside significant volumes of ethane and natural gas liquids (NGLs)
The project is expected to transform the energy landscape in Saudi Arabia. It aims to produce enough gas to meet rising domestic demand while also positioning the Kingdom as a potential exporter of excess gas. This dual focus on self-sufficiency and export capability aligns with the global trend toward cleaner energy sources, as natural gas is increasingly viewed as a transitional fuel in the shift away from oil
Saudi Aramco’s focus on the Jafurah project is integral to its energy strategy, which emphasizes the need for sustainable development. By tapping into the region’s shale gas reserves, Aramco aims to replicate the success of the U.S. shale gas boom.
The United States is the world’s top producer of gas, accounting for 20% of global production, with 40% coming from shale.
This project offers the potential for substantial economic returns and helps the Kingdom mitigate its carbon footprint by transitioning from oil to gas for domestic energy consumption.
The Jafurah contract competition emphasizes the project’s importance on the international scene.
Foreign interest in Saudi Arabia’s energy sector is growing, as seen by the strategic alliances formed between companies as they compete for key phases of development.
The competition for new contracts will probably get more intense as the project moves forward since subsurface and engineering, procurement, and construction (EPC) contracts have already been awarded.
Saudi Aramco, the world’s largest oil producer, also holds assets in the natural gas sector, holding a key place in the gas industry.
The business is positioned as a key participant in the international energy markets thanks to its gas assets, which includes reserves of both conventional and unconventional gas.
With ongoing projects like the Jafurah unconventional gas field, Aramco is expected to greatly expand its gas production capacity, thereby reducing its domestic reliance on oil and positioning itself as a future exporter of natural gas.
Aramco’s resilience to shifting oil prices and changing energy demands is strengthened by this diversification from oil into gas, which makes its shares a desirable long-term investment for investors around the world.
The Jafurah project, in particular, could significantly enhance Aramco’s appeal to investors.
With Jafurah being one of the biggest shale gas projects outside of North America, significant amounts of natural gas liquids and condensates—which are essential to the petrochemical sector—should be produced.
The future of the Jafurah project looks promising as it is set to bring immediate economic benefits to Saudi Arabia, including job creation and technological advancement.
As production is expected to begin in late 2025, Jafurah is positioned to enhance Saudi Aramco’s ability to meet both domestic and international energy demands.
By providing an alternative to crude oil for power generation, the project will further help the Kingdom achieve its climate goals while maintaining its position as a leader in global energy markets.
The Nigerian stock market is currently showing signs of modest recovery, with bullish momentum building… Read More
Access bank through Access Holdings plc has taken over the assets of standard chartered bank… Read More
Ghanaian citizens would no longer require traditional visas to travel to Morocco, following a Visa-free… Read More
The North East caucus meeting of All Progressives Congress (APC) stakeholders descended into chaos on… Read More
Former French President Nicolas Sarkozy has been stripped of his Legion d'honneur (Legion of Honor)… Read More
The Angel-A, a Collective global corporate innovation community fostering collaboration between large enterprises and technology… Read More
