Aramco, an integrated energy and chemicals company of Saudi Arabia, has announced the awarding of engineering, procurement and construction contracts worth $7.7bn (SR28.88bn) to expand its Fadhili Gas Plant in the Eastern Province of Saudi Arabia.

The project is set to enhance the plant's processing capacity from 2.5bscfd to up to 4bscfd.

This substantial increase of 1.5bscfd in processing capacity is expected to bolster Aramco's strategy to augment gas production by more than 60% by 2030, relative to the levels recorded in 2021.

The Fadhili Gas Plant expansion, scheduled for completion by November 2027, is also projected to boost sulphur production by an additional 2,300 tonnes per day.

Aramco's executive vice-president of technical services  Wail Al Jaafari said: “The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export. Together with leading international companies, we are advancing our goal to increase gas production.

"The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry.”

The EPC contracts for the Fadhili Gas Plant increment project have been awarded to Samsung Engineering, GS Engineering & Construction and Nesma & Partners.

Recently, Aramco reported net income of $121.27bn for the full year 2023, marking a 25% decline from $161.06bn in the previous year. Despite the decrease, this figure represents the company's second-highest net income ever.

Additionally, it was reported by Reuters last month that Saudi Aramco and Abu Dhabi National Oil Company are currently in discussions to invest in liquefied natural gas (LNG) projects in the US.

With LNG demand projected to rise by 50% by 2030, the Gulf oil titans are seeking opportunities within the US market.