Name of Client : Saudi Arabian Oil Company (Aramco)
Estimated Budget : $1,200,000,000
Revised Budget : $2,400,000,000
Facility Type : Gas Terminal, Gas Treatment Plant
Sector : Gas
Main Contractor : Hyundai Engineering & Construction/ Hyundai Engineering Company (HEC)
Location : Al Jafurah, Saudi Arabia
Award Date : 2023-Q4
Background
The Jafurah gas terminal will process up to 1.1 billion cubic feet per day (Bcfd) of unconventional (shale) raw gas from nearby areas, producing sales gas, ethane, natural gas liquids and condensate. The Jafurah gas plant is expected to be a key element of Aramco's long- term strategy to boost its unconventional gas production to 3 Bcfd during the next decade. Aramco recently announced its ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. Jafurah is expected to contribute to Saudi Arabia's goal of producing half of its electricity from gas and half from renewables as the kingdom pursues its own 2060 net-zero target. At peak production, Aramco's unconventional gas programme is expected to replace around 500,000 b/d that would otherwise have been used for domestic consumption. The Jafurah gas development alone is expected to replace more than 300,000 b/d at peak production. In line with Aramco's digital transformation programme, development of Jafurah will incorporate advanced Fourth Industrial Revolution (4IR) technologies, including Industrial Internet of Things (IIoT) and video analytics, to enhance construction, operation and safety. The facility for the gas plant will come in two phases. The first phase would come in 2025 and the second phase will come on stream by 2027. In addition, the full field development of Jafurah would later achieve a production capacity of 2 Bcfd by 2030, enabling it to lift its gas production capacity by 50% in the same time frame.
Project Status
As of December 2024, Petron Saudi Industrial has manufactured and delivered 3 o f its sour water drain drum for the project.
Project Scope
The project scope encompasses several key components, including the development of two sulfur recovery units, each with a capacity of 630 tonnes per day, along with tail gas treatment units. Additionally, an air separation unit will be implemented to support the five sulfur recovery trains, featuring an oxygen enrichment operating scenario and providing nitrogen as well. The project also includes the installation of a new cooling tower and its associated headers, as well as the expansion of the existing flare system. Furthermore, there will be the construction and installation of second-phase gas-insulated substations along with the necessary electrical equipment. Lastly, the project involves the expansion and installation of interconnecting pipe racks and piping, as well as the development of an export terminal.
Project Finance
Aramco is the project client.
Project Schedules
Project Announced : 4Q-2022
FEED : 4Q-2022
EPC ITB : 3Q-2023
EP : 4Q-2023
Construction : 2Q-2024
Completion : 4Q-2027
