① Saudi Aramco signed a letter of intent with Sinopec and Spain's Tecnicas Reunidas to participate in the development of a gas compression plant; ② If the project is approved, the total value of the contract is estimated at 2.24 billion US dollars.
Finance Association, July 23 (Editor Li Lin/Intern Editor Wang Yifei) Saudi Aramco has signed a letter of intent with a joint venture between Sinopec and Spain's Tecnicas Reunidas. The joint venture will develop three gas compression plants in Saudi Arabia's largest unconventional gas field in Jafurah in the future. The total value of the contract is estimated at 2.24 billion US dollars.
Tecnicas Reunidas said in a statement on Monday that the engineering projects involved in the letter of intent also include installing 230kV power connections at gas field substations and upgrading water pump systems.
This project was undertaken by a joint venture between Sinopec Refining and Chemical Engineering Group and Spanish company Tecnicas Reunidas. The joint venture is 60% owned by Spanish companies and 40% by Sinopec. The statement said the project is expected to take 44 months to complete and will employ more than 400 engineers.
In September of last year, Tecnicas Reunidas and Sinopec's refining and chemical engineering group signed a strategic alliance agreement in Beijing to jointly implement refining, petrochemical, natural gas and transformation projects on a global scale. Since 2006, the two companies have successfully collaborated on nearly 20 projects and have jointly bid for multiple projects in different countries.
At the beginning of this year, the joint venture was selected by Saudi Aramco as the EPC contractor for the Riyas NGL fractionation facility in Saudi Jafurah gas field, with a contract value of 3.3 billion US dollars. The project was developed on the basis of two EPC contracts, involving the development and construction of Riyas NGL fractionation production lines and Riyas NGL utilities, respectively.
Saudi Aramco estimates that the Jafurah gas field has about 229 trillion standard cubic feet of raw natural gas resources and about 75 billion barrels of condensate. Saudi Aramco plans to achieve sustainable sales of 2 billion standard cubic feet of natural gas per day by 2030, in addition to producing large amounts of ethane, natural gas liquefied petroleum gas, and condensate.
In November 2021, Saudi Aramco announced that it will officially develop the Jafurah gas field. According to its estimates, the total investment over the entire life cycle of the Jafurah gas field will exceed $100 billion.