Aramco has announced contracts totalling over $25bn to advance its gas expansion in Saudi Arabia, aiming for more than a 60% increase in sales gas production by 2030 compared to 2021 levels.

The contracts pertain to the second phase of developing the Jafurah unconventional gas field, the third phase of expanding Aramco’s Master Gas System, the addition of new gas rigs, and ongoing capacity maintenance.

Aramco has awarded 16 contracts totaling approximately $12.4bn for phase two development at Jafurah. This includes the construction of gas compression facilities, pipelines, and the expansion of the Jafurah gas plant with new gas processing trains, utilities, sulphur facilities, and export capabilities.

Additionally, the company will build new Riyas natural gas liquids (NGL) fractionation facilities in Jubail. These will feature NGL fractionation trains, utilities, storage, and export facilities to process NGL from the Jafurah gas plant.

In parallel, Aramco has awarded 15 lump sum turnkey contracts valued at around $8.8bn to initiate phase three expansion of the Master Gas System.

The expansion aims to enhance the network’s size and increase total capacity by 3.15 billion standard cubic feet per day (bscfd) by 2028. It involves laying approximately 4,000km of pipelines and installing 17 new gas compression trains.

Furthermore, Aramco has awarded 23 contracts for gas rigs totalling $2.4bn and two directional drilling contracts valued at $612m. Between December 2022 and May 2024, the company also awarded 13 well tie-in contracts at Jafurah, amounting to $1.63bn.

Aramco president and CEO Amin Nasser said: “These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries. The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand.

“This complements the diversification of our portfolio, creates new employment opportunities, and supports the Kingdom’s transition towards a lower-emission power grid, in which gas and renewables gradually displace liquids-based power generation.”

Last month, Sinopec International Petroleum Services, a part of China-based Sinopec, had won a contract worth CNY7.9bn ($1.08bn) from Aramco pertaining to the Master Gas System project.