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Aramco invests $8bn to raise gas output by 60% 

Aramco's Fadhili project will boost the plant’s processing capacity by 60% by November 2027 Reuters/Ahmed Jadallah
Aramco's Fadhili project will boost the plant’s processing capacity by 60% by November 2027

Saudi Aramco is building on its natural gas reserves to free more crude oil for value-added refining and export. 

As part of the strategy, the oil giant has awarded engineering, procurement and construction contracts worth $8 billion for a major expansion of its Fadhili gas plant in the Eastern Province.

The contracts for the gas increment project were awarded to Samsung Engineering Company, GS Engineering & Construction Corporation and Nesma & Partners, Aramco said in a statement.



The project will boost the plant’s processing capacity by 60 percent to 4 billion standard cubic feet per day (bscfd) by November 2027. The existing capacity is 2.5 bscfd.

The plant expansion will also increase sulphur production by 2,300 metric tonnes per day.

“Together with leading international companies, we are advancing our goal to increase gas production,” said Wail Al Jaafari, executive vice president of technical services, Aramco.

The expansion supports Aramco’s ambitions to develop a lower-carbon hydrogen business, he said, adding that associated liquids from gas are an important feedstock for the petrochemical industry.

Last month Saudi Aramco CEO Amin Nasser said that the company intends to expand its liquefied natural gas (LNG) business internationally, as it plans to use all its natural gas production domestically.

“Expansion for LNG will come from outside markets for the time being,” he noted.

Aramco’s net income fell 25 percent year-on-year to SAR455 billion ($121 billion) in 2023.

The company expects a reduction of around $40 billion over five years from its capital investment program as a result of the directive to pause its maximum capacity expansion from 12 million barrels per day to 13 million bpd.

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