Saudi Arabia signs contracts for Jafurah field, gas network expansion projects

Logo of Ministry of Energy

Saudi Minister of Energy Prince Abdulaziz bin Salman witnessed today, June 30, the signing of contracts for the second phase of Jafurah field development project as well as the third phase of Saudi Aramco’s gas network expansion project.

In his speech at the signing ceremony, the minister stated that the expansion projects in gas production and network in Saudi Arabia come within the energy mix targets.

The ministry has been working with Saudi Aramco since 2019 to develop a clear vision for the energy mix targets, in addition to studying the opportunity cost of using petroleum liquids and their derivatives for burning in power plants and water desalination plants.

He pointed out that there are significant opportunities to replace these quantities with gas and renewable energy.

Saudi Arabia's gas production is expected to increase by 63% from approximately 13.5 Bcf to around 21.3 Bcf by 2030, said the minister, noting that the Hawiyah gas plant expansion will contribute to providing two million cubic feet per day, which can be used during peak times or stored when not needed.