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Saudi Aramco signs Fadhili gas project, awards contracts

The state-owned company says that the gas project will be developed at a total cost that exceeds SAR 50 billion

| | Jul 28, 2016 | 1:11 pm
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Saudi Aramco signing ceremony

Image credit: Saudi Aramco website

Dhahran, Saudi Arabia: Saudi Aramco President and CEO, Amin H Nasser, presided over a signing ceremony of the Fadhili gas project, as the company seeks to expand gas production and supply to meet growing domestic demand for energy, the state-owned oil company said in an announcement. The new mega project will help boost production and supply of clean-burning natural gas, lessening dependence on oil for power generation, the announcement added.

Scheduled to be completed by the end of 2019, the Fadhili gas project, the announcement said, will become a key component of the Kingdom’s master gas system, processing gas from both onshore and offshore fields. Together, with Wasit and Midyan, Saudi Aramco’s two other new major gas projects, Fadhili, the announcement revealed, will add more than five billion standard cubic feet per day (SCFD) of non-associated gas processing capacity. The increase in the supply of natural gas will grow above 17 billion SCFD by 2020, enabling opportunities in Saudi industries, such as steel, aluminium and downstream value-added industries, added the announcement.

The announcement revealed that the project will be developed at a total cost that exceeds SAR 50 billion, with emphasis placed on in-Kingdom expenditures.

It further said that the plant is expected to accommodate 4,500 jobs for Saudis between professional training and permanent and temporary jobs, and a dedicated training centre is expected to be established in the area in collaboration with governmental agencies focused on human resource development.

Specifically, Fadhili, the company highlighted, will process a total of 2.5 billion SCFD of non-associated gas, including two billion SCFD of Hasbah offshore gas and 500 million SCFD of Khursaniyah onshore gas. It is expected to produce 1.5 billion SCFD of sales gas, 4,000 metric tonnes per day of sulphur, and will supply 470 million SCFD of gas to an adjacent cogeneration power plant, which will provide Fadhili with power and steam requirements, and also supply about 1,100 megawatts of electricity to the domestic grid, added the company.

Saudi Aramco further said that it is also exploring future opportunities of environmental significance at Fadhili, which may include a helium recovery plant and a CO2 recovery unit to reduce emissions.

“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,” said Nasser. “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.”

The company revealed that 10 contracts have already been awarded, and it signed four additional contracts at the ceremony, which include:

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

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