Japan's JGC has reportedly secured a contract from Saudi Aramco to construct shale gas facilities in the northwest of the country.
Undisclosed sources with the knowledge of the matter were quoted by Reuters as saying that project, known as System A, will comprise development of processing facilities, wellheads and pipelines for gas in Turaif.
The contract award was initially scheduled to be awarded in November 2014, with planned completion in December 2016, but was delayed due to extension of bidding deadline several times.
The contract is believed to cost as much as $200m, one of the sources said.
Saudi Aramco has also increased the capacity of the gas gathering facility from initially planned 50 million standard cubic feet per day (scfd) to 66 million scfd.
A JGC spokesman confirmed that that company has submitted the bid, but is yet to receive official notification of the result.
According to the news agency, four potential bidders have expressed interest in the System B project, another unconventional gas project and extension to the System A.
The country is considering investing in shale gas industry to generate power to meet the surging demand.
Saudi oil officials estimate that the country could produce shale gas of 20 to 50 million cubic feet per day in 2016 and would reach the capacity to 500 million cubic feet per day by 2018.
By 2025, the country’s shale gas production capacity is expected to reach 4 billion cubic feet per day, the officials added.