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    Saipem bags $750mn Saudi gas contract


The Italian company will supply 835 km of pipelines.

by: Joseph Murphy

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Saipem bags $750mn Saudi gas contract

 Italian engineering firm Saipem has picked up a $750mn contract to build facilities at the Jafurah gas field in Saudi Arabia, the company said on November 30.

The project led by Saudi Aramco is the kingdom's largest non-associated gas field, estimated to hold some 200 trillion ft3 of gas in mostly unconventional reserves. Aramco announced it had kicked off development on November 29.


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Saipem will build a hydrocarbon collection system and a system for transporting gas and condensate to the new Jafurah plant in Saudi Arabia's Eastern province. It will also construct a system to transport water that has been separated from treated gas. All told, the engineering, procurement and construction contract will cover the supply of 835 km of pipelines.

Saipem CEO Francesco Caio said the award consolidated its long-standing relationship with Aramco and the company's position in the Middle East. 

Jafurah is expected to produce 200mn ft3/day of gas by 2025 and 2bn ft3/d by 2030, positioning Saudi Aramco as one of the world's largest gas producers. The kingdom is looking to better monetise its gas reserves for both economic and environmental benefits.

The field will also yield 418mn ft3/d of ethane and around 630,000 barrels/d of gas liquids and condensates, providing feedstock for Saudi Arabia's growing petrochemicals industry. The project is expected to require more than $100bn in lifecycle investments.