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Last Updated on 03
Aramco, one of the largest oil and gas companies in the world, has awarded engineering, procurement, and construction (EPC) contracts worth USD 7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia. These contracts were awarded to Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.
The goal of this ambitious project is to increase the plant's processing capacity by 1.5 billion standard cubic feet per day (bscfd), raising it from 2.5 to 4 bscfd. This expansion aims to support Aramco's strategy to raise gas production by more than 60% by 2030.
Upon completion by November 2027, the Fadhili Gas Plant expansion is expected to add 2,300 metric tons per day to sulfur production. Wail Al Jaafari, Aramco Executive Vice President of Technical Services, emphasized, "The award of these contracts reflects Aramco's commitment to increasing supplies of natural gas, reducing greenhouse gas emissions, and freeing up more crude oil for value-added refining and export.”
Samsung Engineering is executing multiple gas projects in Saudi Arabia simultaneously. In 2021, Samsung E&A won the Jafurah Gas Treatment Project. Samsung Engineering plans to diligently utilize local networks and resources based on the rich regional experience it has accumulated since its first entry into the Saudi Arabian oil and gas market.
Several strategic goals are behind Aramco's decision to invest USD 7.7 billion in the expansion of the Fadhili Gas Plant:
The expansion aims to enhance the plant's processing capacity by 1.5 billion standard cubic feet per day (bscfd), taking it from 2.5 to 4 bscfd. This additional processing capacity is expected to contribute to the company's strategy to raise gas production by more than 60% by 2030, compared to 2021 levels.
By increasing the supply of natural gas for domestic consumption, Aramco can free up more crude oil for value-added refining and export. This aligns with the company's strategy to maximize the value of its resources.
The Fadhili Gas Plant expansion is expected to add 2,300 metric tons per day to sulfur production. Sulfur is a valuable byproduct of natural gas processing and is used in a variety of industries, including agriculture and chemicals.
The EPC contracts for the Fadhili Gas Plant expansion project were awarded to SAMSUNG Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners. A detailed breakdown of the contractors is given below:
Samsung Engineering Company, which is one of the largest construction companies in the world, provides a full range of engineering services, including feasibility studies, design, procurement, construction, and commissioning. The Korean government established it in 1970 as the nation's first engineering company, and Samsung Group bought it in 1978. The company has been engaged in the fields of architecture, civil engineering, building materials, housing, plants, environment, and power plants across the globe. It has successfully performed numerous projects around the world and grown into a globally competitive engineering company.
GS Engineering & Construction Corporation is a Korea-based global EPC contractor with a wide range of experience in refineries, gas, and petrochemical plants, providing design and construction services. It has been engaged in the fields of architecture, civil engineering, building materials, housing, plants, environment, and power plants across the globe. It operates through civil works, architectural construction & housing, plant construction, power, hotels, and other segments. The company has been working as an engineering, procurement, and construction contractor in the fields of oil and gas projects around the world.
Nesma & Partners Contracting Co. Ltd. is one of the top 10 construction companies in Saudi Arabia involved in electro-mechanical, infrastructure, oil and gas, and hospitality. It delivers reliable and innovative solutions to some of the world's biggest energy, construction, and infrastructure challenges. The company was established in 1981 to meet the growing demands of an emerging economy in the rapidly developing Kingdom of Saudi Arabia.
The Fadhili Gas Plant (FGP), located 30km west of Jubail Industrial City in Saudi Arabia’s eastern province, is a part of Saudi Arabia’s proposed Master Gas System, planned to meet the country's growing energy demand.
The plant's construction cost Fadhili Plant Cogeneration Company (FPCC) an estimated USD 13.3 billion, and it went into operation in February 2019. It represents a significant increase in the company’s gas processing capacity and is designed to process gas from both onshore and offshore fields.
The plant comprises five gas turbines with associated heat recovery steam generators and two steam turbines with air-cooled condensers. With a processing capacity of 2.5 billion standard cubic feet per day (bscfd), it processes an estimated 2 billion scfd of non-associated gas from the Hasbah offshore gas field and 500 million scfd of gas from the Khursaniyah onshore gas field.
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