In 2026, Saudi Arabia's Usmaniya non associated gas field will face a critical infrastructure project. Saipem has officially obtained the onshore engineering contract for the new compression plant project in the gas field, with a contract period of approximately 42 months. Saipem's share is worth approximately 900 million euros. This is the first EPC project awarded under Saudi Arabia's National EPC Champion Program, marking an important step forward in Saudi Arabia's natural gas strategy and localization construction.

Build a new compression plant to extend the production life of the gas field

The project is located in the Usmaniya region of the Kingdom of Saudi Arabia and mainly involves engineering, procurement, and construction (EPC) activities for the construction of a new compression plant for non associated gas fields. After the completion of the new compression plant, it will effectively extend the production life of the gas field and help meet the growing energy demand of the Kingdom of Saudi Arabia. The contract was signed by Saipem Nasser Saeed Al Hajri Contracting Company (SNSH), a joint venture jointly controlled by Saipem and Nasser Saeed Al Hajri and Partners Company for Contracting (NSH). Saipem's share in the contract is valued at approximately 900 million euros (approximately 7 billion yuan).

Accelerate localization construction

The Usmaniya Natural Gas Compression Plant is the first EPC project awarded under Saudi Arabia's National EPC Champion Program. The program aims to cultivate a national EPC champion enterprise capable of executing all onshore EPC activities and maximizing the utilization of local resources and expertise. To this end, Saipem and NSH, one of the leading onshore construction companies in Saudi Arabia, have established a joint venture called SNSH, which combines Saipem's engineering and project management capabilities with NSH's construction expertise. This cooperation model not only reflects the deep integration of international engineering capabilities and local construction resources, but also lays a solid foundation for Saudi Arabia to cultivate its own EPC system.

Consolidate the Saudi market and assist in energy transformation

This winning bid further consolidates Saipem's market position in the Kingdom of Saudi Arabia and confirms Saipem's long-term commitment to contributing to the development of Saudi Arabia's energy infrastructure while promoting local skills and resource utilization. With Saudi Arabia's plan to increase natural gas production by 80% by 2030, investment in infrastructure such as natural gas processing, compression stations, and pipelines is expected to continue to grow, bringing new market opportunities for suppliers of steel plates, pipelines, pressure vessels, and related equipment.

Saipem is a globally leading large-scale project engineering and construction company in the energy and infrastructure sectors, with business covering both offshore and onshore projects. The company has 5 manufacturing plants and an offshore fleet consisting of 17 self owned construction ships and 12 drilling platforms (9 of which are self owned). Saipem is listed on the Milan Stock Exchange and operates in over 50 countries worldwide, with approximately 30000 employees from over 130 countries and regions. The acquisition of the 900 million euro EPC contract further strengthens Saipem's competitive advantage in the Middle East energy engineering market and provides key support for Saudi Arabia's natural gas capacity expansion. Editor/Yang Beihua