A consortium of Hyundai Engineering and Hyundai Engineering & Construction has completed Phase 1 of the gas processing facilities at Saudi Arabia’s Jafurah gas field in the country’s Eastern Province, SaudiGulf Projects reported on September 16, 2026. This completion is a separate project from the previously reported Jafurah gas compression EPC (Engineering, Procurement and Construction) project, marking the finish of Phase 1 of the gas processing facilities.
The project was awarded by Saudi Arabia’s state oil company, Saudi Aramco, and was executed by a joint venture (JV) with Hyundai Engineering holding a 55% stake and Hyundai Engineering & Construction holding the remaining 45%, according to the report. The scope of work reportedly included the main gas processing facility along with a Sulfur Recovery Unit, utilities, and offsite facilities. The gas processing facility is a core downstream unit that refines and processes raw gas produced at the Jafurah field into sales gas, and together with the previously completed gas compression EPC project, it is reported to form the overall value chain of the Jafurah gas field development.
The value of the Phase 1 project is reported at approximately USD 1.65 billion, with the original contract value cited at approximately USD 1.7 billion. Construction took 45 months, running from November 2021 to August 2025, it is reported. The Jafurah gas field spans approximately 17,000 square kilometers, with estimated gas resources of approximately 200 trillion cubic feet (tcf), according to the report. Aramco reportedly aims to produce approximately 2 billion cubic feet per day (bcf/d) of sales gas from Jafurah by 2030. Separately, the Hyundai Engineering-Hyundai Engineering & Construction consortium was also awarded the Jafurah Phase 2 project (valued at approximately USD 2.3 billion) in December 2023, it is reported.
The Jafurah gas field is regarded as a key gas supply source under Saudi Arabia’s Vision 2030 energy diversification strategy, and the completion of this gas processing facility is seen as an indication of steady progress in building downstream infrastructure for the field. With estimated gas resources of approximately 200 trillion cubic feet, Jafurah is regarded as a field expected to play a central role over the medium to long term in Saudi Arabia’s strategy to expand its non-oil gas supply chain, according to the report.
Across Saudi Arabia and the wider Gulf region, orders for gas processing and compression infrastructure linked to large-scale gas field development have continued, with major EPC contractors increasingly securing sequential, phased contracts on the same field. Cases such as this project, where a Phase 2 contract followed Phase 1 completion, are seen as reflecting a tendency among project owners to award subsequent phases continuously to consortiums with demonstrated construction capability. Large gas processing projects often encompass ancillary facilities such as sulfur recovery units, providing substantial order opportunities for related equipment and specialized facility suppliers as well. A 45-month construction period is considered standard for a project of this scale, with schedule management capability seen as a factor directly affecting an EPC contractor’s competitiveness in securing follow-on work. As development of the Jafurah field continues toward Aramco’s 2030 sales gas production target, industry observers are reportedly watching for the possibility of further downstream infrastructure orders. Cases in which international EPC contractors build long-term trust with major project owners and go on to win successive phases of the same project are also seen as underscoring the importance of continuity in contractor selection for large, multi-year infrastructure undertakings such as gas field development.
The progress and completion timeline of the separately awarded Jafurah Phase 2 project (valued at approximately USD 2.3 billion) is a key point to watch. Whether additional downstream infrastructure orders follow as Aramco pursues its target of 2 billion cubic feet per day of sales gas production by 2030 is also worth monitoring. Whether downstream petrochemical or power generation projects utilizing gas produced from the Jafurah field materialize is another point requiring further confirmation. Whether further gas processing and compression facility orders follow as Jafurah’s development advances into additional phases, and whether the existing contractors, including this consortium, maintain their competitiveness in securing follow-on contracts, are also points to watch.