Saudi Aramco signs contract for mega gas project

Saudi Aramco President and CEO, Amin H. Nasser, presided over a signing ceremony of the Fadhili gas project. The new Saudi Aramco mega project will help boost production and supply with clean-burning natural gas, lessening dependence on oil for power generation.

Joining the Saudi Aramco management team at the ceremony were CEOs and executives from engineering, procurement and construction (EPC) companies, and other service providers involved in the development and execution of the Fadhili gas project.

The Fadhili gas project is scheduled to be completed by the end of 2019.

Alongside Wasit and Midyan, Saudi Aramco’s two other new major gas projects, Fadhili will add more than 5 billion ft³/d of non-associated gas processing capacity. The increase in the supply of natural gas will grow above 17 billion ft³/d by 2020, enabling opportunities in Saudi industries such as steel, aluminum, and downstream value-added industries.

The project will be developed at a total cost that exceeds 50 billion Riyals with emphasis placed on In-Kingdom expenditures, benefiting localisation initiatives that will reach 40% of the total cost. The plant is expected to accommodate 4500 jobs for Saudis between professional training and permanent and temporary jobs. A dedicated training center is expected to be established in the area in collaboration with governmental agencies focused on human resource development. The Fadhili training programme, to be set up in partnership with project contractors, will provide Saudi nationals with opportunities to gain work experience and technical skills. Furthermore, partner contractors will sponsor developing young engineers at their offices across the world.

Saudi Aramco President and CEO, Amin Nasser, said: “Saudi Aramco’s multi-billion dollar investment in Fadhili will considerably increase the share of gas in the Kingdom’s energy mix and fits in with our long term strategy to lower emissions. Gas will be of vital importance to the Kingdom’s ongoing industrial diversification and economic development while enabling better energy efficiency in the utility sector. The increased gas production will mean more feedstock for industries to expand, and new ones to emerge that will help drive job creation, a key objective of Saudi Vision 2030.”

Nasser added: “On its own, Fadhili is a pacesetter among mega projects in Saudi Arabia where local sourcing and manufacturing for goods and materials will reach 40%, as well as being the first Saudi Aramco project to run on low Btu (British thermal unit) gas. Environmentally, it’s also unique as it’s designed for maximum sulfur recovery of 99.9%, utilising the Tail Gas Treatment process, reflecting Saudi Aramco’s pioneering environmental stewardship.”

Specifically, Fadhili will process a total of 2.5 billion ft³/d of non-associated gas, including 2 billion ft³/d of Hasbah offshore gas and 500 million ft³/d of Khursaniyah onshore gas. It is expected to produce 1.5 billion ft³/d of sales gas, 4000 metric tons per day of Sulphur, and will supply 470 million ft³/d of gas to an adjacent cogeneration power plant, which will provide Fadhili with power and steam requirements, and also supply about 1100 MW of electricity to the domestic grid.

Saudi Aramco is also exploring future opportunities of environmental significance at Fadhili.

Saudi Aramco signed four additional, major contracts:

• Larsen & Tubro for Fadhili Offshore Facilities.
• Saudi KAD for Fadhili Downstream.
• Saudi Electric Company and Engie for the Fadhili Combine Heat & Power (CHP).
• Al Subeae & Sons Investment Holding Company for the Fadhili Residential Camp.

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/21072016/saudi-aramco-signs-contract-for-mega-gas-project-2801/