Saudi Aramco Expands Gas Output With $1B Infrastructure Deal, June 14

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 reflect Aramco’s plan to increase gas production by approximately 80% over 2021 levels by 2030, requiring significant infrastructure spending.

Saipem Wins Major Gas Plant Contract

Saipem secured the €900 million ($1.04 billion) 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 Project 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 in the filing. 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 aggressive execution of its 80% production increase target by 2030. These infrastructure investments position the company to meet growing global energy demand.

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