Saudi Aramco, the world’s largest oil exporter, has recently awarded contracts worth over $3.3 billion to Chinese company Sinopec and Spain’s Tecnicas Reunidas. The contracts are for the construction of a gas facility in Saudi Arabia, marking a significant step in the kingdom’s efforts to diversify its energy resources.
According to a disclosure on the Spanish Stock Exchange, Sinopec will hold a majority share of 65 percent in the project, with Tecnicas Reunidas owning the remaining 35 percent. The project, named Riyas natural gas liquids, is part of the Jafurah unconventional gas production project in Saudi Arabia.
The contracts encompass the engineering, procurement, and construction of the facility, including the construction of liquefied natural gas distillation facilities within the Al-Riyas project. Additionally, the scope of work includes the provision of storage and export facilities, highlighting the comprehensive nature of the project.
Aramco’s website notes that the Jafurah Gas Field, where the project is located, is estimated to contain a staggering 200 trillion standard cubic feet of natural gas, making it the largest such discovery in the Middle East. This abundance of natural gas positions the project as a significant contributor to Saudi Arabia’s future energy needs and export potential.
Aramco has described the development as “one of the most ambitious projects in Aramco’s history,” underscoring its strategic importance for the company and the kingdom as a whole. The project aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy away from its reliance on oil and transform the country into a global investment powerhouse.
The deal with Sinopec represents the latest chapter in the long-standing partnership between the Chinese firm and Aramco. In March 2023, Sinopec announced its intention to actively explore shale gas opportunities in Saudi Arabia, signaling a deepening collaboration between the two energy giants.
As Saudi Arabia continues to pursue its ambitious energy development plans, the collaboration between Aramco, Sinopec, and Tecnicas Reunidas stands out as a testament to the kingdom’s commitment to advancing its energy sector and fostering international partnerships.
(Source: Arab News | Upstream Online)
