Saudi Aramco announced it has awarded a large batch of new contracts worth a combined total of more than $25 billion as part of its gas production growth strategy, covering Phase 2 development of the Jafurah unconventional gas field and Phase 3 expansion of the nationwide Master Gas System. The awards mark progress toward the company’s target of increasing sales gas production by more than 60% by 2030 compared to 2021 levels, it was reported.
The newly awarded contracts reportedly include Jafurah gas field Phase 2 development, Master Gas System Phase 3 expansion, new gas drilling rig contracts, and contracts to maintain production capacity at existing fields. The Master Gas System Phase 3 expansion is expected to add further daily processing capacity to the nationwide gas processing and transport network, including approximately 4,000 km of new pipelines and 17 new gas compression trains, according to reports. Specific contractor and technology provider names for individual packages have not been clearly disclosed, as the awards were split across multiple contract packages.
The total value of the awards is reported at more than $25 billion, which reportedly includes 23 gas drilling rig contracts worth $2.4 billion and two directional drilling contracts worth $612 million, awarded separately. The Master Gas System Phase 3 expansion is reported to target an additional 3.15 billion standard cubic feet per day (bscfd) of processing capacity by 2028. The Jafurah field’s estimated reserves are reported at 229 trillion cubic feet (Tcf) of raw gas and approximately 75 billion barrels of condensate on a stock tank barrel basis.
Aramco has reportedly continued to expand investment in its gas segment to boost domestic gas self-sufficiency and strengthen feedstock supply stability for the petrochemical and power generation sectors. This large-scale contract award is seen as an extension of that strategy, underscoring Jafurah’s emergence as a core pillar of Saudi Arabia’s gas production growth, according to reports.
Saudi Arabia and other Gulf oil-producing nations have recently shown a shift in the center of gravity of their energy strategies from oil toward gas, and this contract award is cited as a representative example supporting that trend. Large-scale gas development can strengthen the feedstock supply base for downstream petrochemical and power generation sectors, potentially influencing investment sentiment across related industries. The fact that the awards were distributed across numerous EPC contractors, drilling companies, and equipment suppliers suggests substantial contract opportunities for the global oilfield services and engineering industry. As unconventional gas field development accelerates, the role of service companies with unconventional drilling capabilities such as hydraulic fracturing is also expected to grow.
A key point to watch is when and to which companies the individual EPC packages for Master Gas System Phase 3 will be awarded. Also worth monitoring is when Jafurah Phase 2 development translates into actual production increases, and whether the 2030 target of a 60% increase in sales gas is achieved. Additional downstream-linked projects that may be awarded, such as gas processing or petrochemical feedstock supply arrangements, are also worth watching.