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Abu Dhabi, UAEWednesday 12 December 2018

Saudi Aramco awards $4.5bn worth of contracts to boost gas output

The projects will help free up oil for export

Amin Nasser, the chief executive of Aramco, said the new gs supplies will help reduce domestic reliance on liquid fuels for power generation and enable increased liquids exports. Hamad Mohammed/Reuters
Amin Nasser, the chief executive of Aramco, said the new gs supplies will help reduce domestic reliance on liquid fuels for power generation and enable increased liquids exports. Hamad Mohammed/Reuters

Saudi Aramco, the world’s biggest oil producer, has awarded US$4.5 billion worth of contracts to oil and gas services companies that will help boost the kingdom’s gas production and lower its consumption of oil.

The companies that won the eight contracts include Spain’s Técnicas Reunidas, Italy’s Snamprogetti, China Petroleum Pipelines Company, Abu Dhabi-based National Petroleum Construction Company, McDermott Middle East and US-based Jacobs Engineering

The projects will help boost the kingdom’s gas production by about 1 billion standard cubic feet per day (scfd), the company said.

“New supplies will help reduce domestic reliance on liquid fuels for power generation, enable increased liquids exports, provide feedstock to petrochemical industries, and reduce carbon emissions,” said Amin Nasser, the chief executive of Saudi Aramco. “Investments like these help secure Saudi Aramco’s preeminent position as a reliable supplier of energy domestically and to the world.”

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Saudi Aramco’s total gas processed last year reached 12 billion scfd, an all-time high, producing 8.3 billion scfd of sales gas. Saudi Arabia, the world’s biggest oil exporter, wants to free up oil for export as well localize content used in the energy industry.

“They (the contracts) also reflect our concerted effort, as stated in Saudi Vision 2030, to diversify our economy, promote local manufacturing, support a sustainable environment, and strengthen our business and investment climate with the domestic private sector through fruitful international partnerships,” said Mr Nasser.

The projects include improving and sustaining gas production at the North, South and Satellite Gas Compression Plants at Haradh and Hawiyah fields. Madrid-based Técnicas Reunidas won three contracts for this project.

Aramco awarded Snamprogetti a contract for the Hawiyah Gas Plant expansion that will help process additional sweet gas of 1.07 billion scfd to come on stream by June 2021.

Other contracts include the installation of around 450 kilometres of pipelines between the Haradh field and Hawiyah Gas Plant, and engineering and project management services for processing facilities for Arab heavy crude from the Zuluf offshore field