Saudi Aramco to invest $110bn on Jafurah unconventional gas development
Oil company has already issued tender for independent steam and power project at the Jafurah field
State oil company Saudi Aramco is planning to invest $110bn to develop unconventional gas reserves in Saudi Arabia’s Al-Jafurah field.
The plans were approved by the Saudi High Commission for Hydrocarbons during a meeting chaired by the kingdom’s Crown Prince Mohammed bin Salman. The crown prince revealed that the development would lead to annual net income of $8.6bn and contribute $20bn to the kingdom’s gross domestic product (GDP) every year.
The Jafurah field is expected to produce 500,000 barrels per day (b/pd) of gas liquids and condensates and 130,000 barrels per day (b/pd) of ethane.
In line with the Vision 2030 masterplan, Riyadh is aiming to ensure the kingdom remains self-sufficient in gas supply as demand for power continues to grow in the residential and industrial sectors.
Saudi Aramco has tendered a contract for developers to submit proposals for the planned Jafurah cogeneration independent steam and power plant (ISPP).
In December, Aramco extended the bid submission date to 15 March from the previously set deadline of 31 January. This had already been extended from the original submission date of 1 December 2019.
The cogeneration plant will have a power capacity of 270MW-320MW and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023. The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr by 2027 respectively.
Aramco has set a target commissioning date for the project for 31 March 2023. The local SMBC has been appointed as financial adviser for the scheme.
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