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Aramco awards US$7.7 billion EPC contracts
Expansion of Fadhili gas plant to boost processing capacity to 4 bscfd
Michael Marray 10 Apr 2024

Aramco has awarded US$7.7 billion worth of engineering, procurement and construction (EPC) contracts for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia.

The Saudi oil and gas giant awarded the contracts to Samsung E&A, GS Engineering & Construction Corporation (part of South Korea’s GS Group), and Saudi-based contractors Nesma & Partners.

Samsung E&A will execute packages for the gas treatment unit and utilities and offsites.The project is expected to increase the plant’s processing capacity to 4 billion standard cubic feet per day from 2.5 bscfd. Samsung E&A, rebranded from Samsung Engineering in 2023, has also worked on the Jafurah gas treatment project, having been awarded a major contract in 2021.

The additional 1.5 bscfd of processing capacity at Fadhili will contribute to the company’s strategy of raising gas production by more than 60% by 2030, when compared with 2021 levels.

Expansion of the Fadhili facility, located 350 kilometres northest of Riyadh, is expected to be completed by November 2027. It is also expected to add an additional 2,300 metric tonnes per day to sulphur production.

"The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export," says Wail Al Jaafari, Aramco executive vice-president for technical services.

"Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry,” he adds.

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