Saudi Aramco grants $25 billion contracts: Focus on increasing production and reducing emissions

Saudi Aramco, the largest energy company in the world, granted contracts worth $25 billion for the development of its Jafurah gas project to boost production capability and reduce global warming emissions, reported Bloomberg.

The contracts that were awarded include $12.4 billion for the increase in production at the Jafurah gas field and on top of that $8.8 billion was for the expansion of the master gas system, which delivers natural gas to the buyers around the country, according to a company statement. Aramco also awarded $2.4 billion in gas rig contracts.

“These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries,” reported Bloomberg quoting Amin Nasser, chief executive officer of Aramco from a company statement on Sunday.

Saudi Arabia has the biggest gas reserves in the world, and the development of such a reserve in the Jafurah field, which is estimated to hold 200 trillion cubic feet of natural gas will cost nearly $100 billion. This will increase Aramco's natural gas production more than 60 per cent by 2030 which is necessary for the rising demand, according to the company executive.

“The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand,” said Nasser.

The natural gas produced from the project will be used to supply the domestic industries in the country, with any form of excess capacity production it will be potentially used to make blue hydrogen or exported to other countries and Liquified Natural Gas (LNG), said Aramco.

Saudi Aramco's market value is at $1.788 trillion, making the Middle East-based energy giant, the biggest producer of energy resources in the world. It is followed by Exxon Mobil at $516.42 billion, and Chevron at $286.06 billion, according to data collected from CompanyMarketCap.