China Petroleum & Chemical Corporation (Sinopec) said on Thursday that its subsidiary Sinopec Oilfield Services has signed a contract worth about $1.1 billion to build a natural gas pipeline for Saudi Arabia’s state-owned oil company Saudi Aramco.
The Sinopec subsidiary is launching the third phase of Saudi Aramco’s massive oil development. project To develop a natural-gas pipeline network, Aramco last year abandoned plans to boost oil production and instead plans to increase natural gas production by 60 percent by the end of the decade, an ambitious goal that would require a vast network to transport the gas within Saudi Arabia and possibly export it.
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Liquefied natural gas (LNG) is seen as a growth market during the global “transition” away from oil, but many climate activists do not favor LNG over oil. The Biden administration has Suffocate A natural gas supply shortage would cripple every other part of the American energy industry and create a huge opportunity for foreign producers.
Aramco is make Saudi Arabia launched an international LNG acquisition late last year, aiming to attract European customers who were former Russian clients. Saudi Arabia has made a series of large natural gas discoveries on its territory over the past year. Titanium Gas make a reservation At the Jafura field, which could potentially be the Middle East’s largest shale gas reserve.
Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman (left) and Saudi Aramco CEO Amin Nasser during the 24th World Petroleum Congress in Calgary, Alberta, Canada, Monday, Sept. 18, 2023. (Gavin John/Bloomberg via Getty Images)
Aramco invoice Jafurah is “the crown jewel of our unconventional gas program” and “one of the most ambitious projects in Aramco’s history.” Because the gas is trapped deep underground beneath layers of hard shale and liquid condensate, Aramco must use advanced hydraulic fracturing techniques to access it and pull it through the dense rock formations.
The Jafurah discovery was big enough on its own to make Aramco the world’s leading LNG company, and combined with other discoveries, Saudi analysts say it could become the world’s third-largest gas producer by 2030 — just in time for a predicted surge in gas demand over the next decade.
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Sinopec immediately expressed interest in working with Saudi Arabia on the Jafura oil field, and South Korea’s Hyundai also signed a $2.4 billion deal to build a gas processing plant at Jafura. Sinopec and Spain’s Tecnicas Reunidas also picked up Contract for construction of gas processing facility.
Aramco’s “Master Gas System” include When complete, the pipeline will be nearly 2,500 miles long. Sinopec’s contract stipulates that construction of the pipeline be completed by May 2027.
