Middle East
Saudi Aramco launches bid for multi billion dollar natural gas compression project
Seetao 2025-11-19 11:25
  • Saudi Aramco provides core infrastructure support for its ambitious capacity expansion plan through this multi billion dollar investment
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To support its ambitious 2030 natural gas production increase strategy, Saudi Aramco is actively promoting the expansion of compression capacity at two key natural gas processing plants in the Eastern Province - Shedgum and Uthmaniya plants. This multi billion dollar project has entered a critical stage of bidding for major engineering, procurement, and construction (EPC) contracts, marking a solid step for Saudi Arabia in strengthening its position in the global natural gas market.

It is reported that the Shedgum and Uthmaniya factories are the core hubs of Saudi Arabia's natural gas processing network, currently processing approximately 870 million cubic feet of natural gas and 1.2 billion cubic feet of Khuff associated gas per day, respectively. The compression capacity expansion project aims to significantly enhance the natural gas processing and compression capabilities of these two factories, and plans to construct a new pipeline system to build a stronger and more flexible natural gas transportation network, ensuring efficient gathering and distribution of resources.

The project bidding work has been systematically carried out. According to industry sources, Saudi Aramco initiated the pre qualification process for EPC contracts in the fourth quarter of last year. Subsequently, the company officially released multiple EPC contract package bidding documents for the project in the second quarter of this year, and initially set the bidding deadline for August 17th. At present, the latest bidding deadline is set for November 17th, and multiple international and local contractors are actively preparing their bids for this.

This large-scale investment is the core initiative of Saudi Aramco to achieve its strategic goal of increasing natural gas production and processing capacity by 60% by 2030 compared to 2021. To achieve this ambition, the company is investing significant capital in natural gas projects within the Kingdom of Saudi Arabia. Financial data shows that Aramco's capital expenditures in the third quarter of 2025 reached $12.55 billion, a year-on-year increase of 2%; The cumulative capital expenditure for the first nine months of 2025 is 37.41 billion US dollars, an increase of 3.38% compared to the same period last year. The company's previously announced full year capital investment guidance for 2025 ranges from $52 billion to $58 billion, not including approximately $4 billion invested through project financing channels. Keywords: Middle East news, Middle East news and information

The advancement of the Shedgum and Uthmaniya natural gas compression projects not only reflects Saudi Aramco's confidence in the long-term demand of the global natural gas market, but also highlights its determination to maintain its leadership position in the energy sector through sustained capital expenditures. The final implementation of the project will greatly enhance Saudi Arabia's domestic energy supply security and lay a solid infrastructure foundation for future natural gas export expansion.Editor/Cheng Liting

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