Milan-based construction and engineering firm Saipem recently announced that it has secured a significant contract exceeding $1 billion. This agreement involves the development of a new gas compression plant for Saudi Aramco’s Uthmaniyah non-associated gas field located in eastern Saudi Arabia.
Collaboration Under National EPC Champion Program
Saipem disclosed that this contract marks the inaugural engineering, procurement, and construction (EPC) project formed under Saudi Aramco’s “national EPC champion program.” This initiative is designed to cultivate domestic contractors by linking them with international companies to manage large onshore energy projects while enhancing local involvement and work opportunities. The collaboration was formalized through a joint venture with Nasser Saeed Al-Hajri Contracting Co., a local contractor, with the project expected to span approximately 42 months.
Enhancing Gas Production Capabilities
The new facility aims to boost the productive lifespan of the Uthmaniyah gas field, which is crucial for meeting the rising energy demands in Saudi Arabia. Saipem’s technical specifications reveal that the facility will focus on compressing non-associated gas to channel it to the existing Uthmaniyah gas plant. The project entails the construction of gas compression facilities that will separate gas from liquids and elevate gas pressure from roughly 150 psig to 1,000 psig. The planned capacity is to deliver an impressive 882 million cubic feet of gas daily into the current processing infrastructure, along with necessary modifications to the existing plant.
Supporting Saudi Arabia’s Vision for Gas Production
This contract comes as part of Saudi Aramco’s broader strategy to expand gas production and processing capabilities. The company aims to elevate its sales gas production by as much as 80% by 2030 compared to 2021 levels. This initiative is vital for bolstering domestic gas supplies that cater to power generation, industrial needs, and petrochemical production.
According to industry reports, the Uthmaniyah project is aligned with a comprehensive effort to enhance gas compression and processing capacity at both the Uthmaniyah and Shedgum facilities. These facilities currently handle about 1.2 billion cubic feet per day and 870 million cubic feet per day of gas, respectively.
Significance of the Uthmaniyah Gas Plant
First commissioned in 1981 as part of Aramco’s master gas system, the Uthmaniyah Gas Plant serves as a cornerstone processing hub within the natural gas network. Located approximately 177 km southwest of Dhahran, it is instrumental in processing gas from various fields in the region and ensuring a stable supply to domestic markets.
In conclusion, the recent contract award signifies not only the collaboration between Saipem and local contractors but also emphasizes Saudi Arabia’s commitment to enhancing its gas production capabilities. This evolving relationship aims to strengthen the domestic workforce while addressing the country’s increasing energy needs. As the gas sector continues to advance, projects like the Uthmaniyah compression plant stand to play a pivotal role in the nation’s energy landscape.