Saudi Aramco is moving ahead with plans to expand the Fadhili gas processing facility in the kingdom’s Eastern Province as part of its strategy to tap vast and under-developed gas resources within Saudi Arabia, according to a report in Bloomberg.
The state-run company has “awarded contracts worth $7.7 billion to expand the Fadhili plant to 4 billion cubic feet per day from 2.5 billion. Korea’s Samsung Engineering Co. and GS Engineering & Construction Corp. were selected for engineering contracts alongside local firm Nesma & Partners Contracting Co. Ltd.,” according to the report.
Global demand for natural gas has surged over the past three years, as countries turn toward cleaner-burning fuels and European nations that traditionally sourced most of their gas from Russia look for alternative suppliers.
In the United States, demand for the U.S. to produce more gas and export it is becoming a political issue.
The United States exported more liquefied natural gas (LNG) than any other country in 2023. However, the Biden administration announced a temporary pause on pending decisions on exports of Liquefied Natural Gas (LNG) to non-FTA countries in January.
House speaker Mike Johnson has attempted to link any U.S. foreign aid deal to Ukraine to rolling back President Joe Biden’s pause on natural gas exports.
Saudi Arabia has some of the biggest gas reserves in the world. Aramco is developing the Jafurah field, which is estimated to hold 200 trillion cubic feet of gas.
