Saudi Aramco Awards $1.04B Gas Plant Contract, June 15

Saudi Aramco awarded a €900 million ($1.04 billion) engineering, procurement, and construction contract for a gas compression plant in the Uthmaniyah gas field. The company also signed a long-term service agreement with GAS Arabian Services Co. These moves support Aramco’s goal to raise gas production 80% above 2021 levels by 2030, requiring substantial capital investment in new infrastructure across its operations.

Saipem Secures Major Gas Plant Deal

Saipem won the €900 million contract through SNSH, a joint venture between Saipem and Saudi-based NSH. The project covers engineering, procurement, and construction of the Uthmaniyah Gas Compression Plant. Work will take approximately 42 months and aims to extend the production life of the Uthmaniyah gas field by tapping its non-associated gas flow.

First Award Under National EPC Champion Programme

This contract represents the first EPC project awarded under Aramco’s National EPC Champion Programme, which develops Saudi contractors through joint ventures with international firms. The award came through negotiation rather than competitive tender. The programme reflects Aramco’s strategy to build domestic capacity while pursuing its aggressive gas expansion goals.

Long-Term Service Agreement Signed

GAS Arabian Services Co signed a long-term agreement with Saudi Aramco for provision of various services, according to a filing at the Saudi Exchange. Details of the service scope and contract value were not disclosed. The agreement adds to Aramco’s infrastructure build-out across its operations.

Massive Gas Production Expansion Underway

Aramco targets an 80% increase in gas production over 2021 levels by 2030. This ambitious expansion programme requires substantial capital investment in new facilities and infrastructure. Recent contract awards demonstrate the scale of projects needed to meet this target.

Final Thoughts

Aramco’s $1.04 billion gas plant contract and service agreement signal accelerating capital spending to meet its 2030 production goals. The infrastructure build-out positions the company to capture growing global gas demand.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.