Aramco awards $7.7 bln in contracts for Fadhili gas expansion

Samsung E&A Co

02/04/2024 13:55

DUBAI, April 2 (Reuters) - Saudi Aramco has awarded $7.7
billion in contracts to expand its Fadhili gas plant's
processing capacity to 4 billion standard cubic feet per day,
the company said on Tuesday.
    The plant currently has capacity to process 2.5 billion
standard cubic feet per day. The expansion is expected to be
completed by November 2027.
    Aramco  2222.SE  awarded engineering, procurement and
construction contracts to South Korea's Samsung Engineering
 028050.KS  and GS Engineering & Construction Corporation
 006360.KS  as well as Nesma & Partners, in which Saudi
sovereign fund PIF took a stake last year.
    The expansion will contribute to Aramco's strategy to boost
its gas production by more than 60% from 2021 levcels by 2030.
    The plant is also expected to add an additional 2,300 metric
tons per day of sulphur production.
    Saudi Arabia in January ordered Aramco to lower its oil
production capacity target to 12 million barrels per day (bpd)
from 13 million bpd. 
    The kingdom is working on developing its unconventional gas
reserves, which require advanced extraction methods such as
those used in the shale gas industry. 
    It is also looking at investing in liquefied natural gas
(LNG) projects abroad, having made its first foray last year by
buying a minority stake in MidOcean Energy for $500 million.

 (Reporting by Yousef Saba
Editing by David Goodman
)
 ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))