The Uthmaniyah gas compression plant has entered construction, marking a major step in Saudi Arabia’s gas infrastructure expansion. Saipem Nasser Saeed Al-Hajri Contracting Company (SNSH) has started EPC work on the facility. The joint venture combines Italian contractor Saipem with Saudi contractor Nasser Saeed Al-Hajri & Partners Company for Contracting (NSH).
The $1.24bn Uthmaniyah Gas Compression Plant forms part of Saudi Aramco’s wider Shedgum and Uthmaniyah gas compression project. The broader development will increase compression and processing capacity at both facilities. It will also add pipelines to strengthen gas transportation across Saudi Arabia’s Eastern Province.
The construction start follows Aramco’s formal award of the main EPC contract to SNSH in June 2026.
Saipem separately values its share at approximately €900m, equivalent to about $1.04bn. The EPC works will run for approximately 42 months.
Uthmaniyah Gas Compression Plant advances EPC construction
The Uthmaniyah Gas Compression Plant will serve the non-associated Uthmaniyah gas field in Saudi Arabia. Its new compression facilities will help extend the field’s productive life.
Consequently, the project will support Saudi Arabia’s growing demand for natural gas. Aramco continues to invest heavily in gas production and processing infrastructure across the Kingdom.
The existing Uthmaniyah processing plant currently receives about 1.2 billion cubic feet per day of Khuff raw gas. Meanwhile, the Shedgum plant receives approximately 870 million cubic feet daily.
Therefore, the wider compression program targets both facilities rather than Uthmaniyah alone. Aramco intends to increase compression and processing capacity while improving gas transportation infrastructure.
The new facility will compress non-associated gas before it enters the existing Uthmaniyah processing system. Earlier technical documentation identified compression from 150psig to 1,000psig as a project objective.
In addition, the technical scope includes modifications to the existing Uthmaniyah Gas Plant. Separated liquids will also move into the existing processing facilities.
Uthmaniyah Gas Compression Plant supports local EPC capacity
The Uthmaniyah Gas Compression Plant also carries strategic importance for Saudi Arabia’s domestic construction sector. It represents the first EPC project awarded under Aramco’s National EPC Champion program.
The program seeks to develop a national EPC champion for major onshore energy projects. It also aims to maximize local resources, expertise and participation throughout project delivery.
SNSH brings together Saipem’s engineering and project management capabilities with NSH’s Saudi construction expertise. This partnership creates a locally based platform for executing large-scale onshore EPC projects.
Meanwhile, the Uthmaniyah package represents only one component of the wider development. Aramco has structured the Shedgum and Uthmaniyah program into nine separate EPC and supporting packages.
These packages cover compression facilities, pipelines, temporary construction facilities and early site preparation. They also include project management facilities, plant PIA and PSA packages.
Aramco has already awarded the early works site preparation package to Al-Shalawi International Company Trading and Contracting. The company is therefore supporting early construction activities across the wider development.
Furthermore, Aramco has held discussions with Larsen & Toubro Energy Hydrocarbon regarding the Shedgum compression facility package. Arkad Engineering & Construction has also emerged as the lowest bidder for the Shedgum pipeline package.
The Uthmaniyah pipeline package has faced a change in contractor negotiations. A Sinopec and Al-Qahtani Pipe Coating Industries consortium failed to satisfy Aramco’s requirements. The consortium subsequently split, prompting Aramco to consider discussions with other bidders.
Project Outlook
The construction start gives the wider gas compression program a clear execution pathway. SNSH now has approximately 42 months to complete its Uthmaniyah EPC scope.
The project also supports Aramco’s target to increase gas production and processing capacity by about 80% by 2030. The company uses 2021 production levels as its baseline for that target.
As a result, the Uthmaniyah development will contribute to a broader expansion of Saudi Arabia’s domestic gas infrastructure. The construction program will combine new compression assets with upgrades and supporting pipeline infrastructure.
The Uthmaniyah gas compression development also connects with major LNG infrastructure projects across the Gulf. Our report previously covered the $1 billion Marsa LNG Terminal in Oman, which targets LNG bunkering and exports from Sohar.
That project involves an integrated gas supply, liquefaction, storage and bunkering facility. It also includes a solar photovoltaic plant designed to provide power for the terminal.
While the Marsa LNG Terminal focuses on LNG production and marine fuel supply, Uthmaniyah targets gas compression and processing. Together, the developments highlight continued investment in Gulf gas infrastructure and downstream energy facilities.
Project Fact Sheet
Name: Uthmaniyah Gas Compression Plant.
Broader program: Shedgum and Uthmaniyah Gas Compression Project.
Location: Eastern Province, Saudi Arabia.
Project owner: Saudi Aramco.
Project type: Onshore natural gas compression infrastructure.
Development stage: EPC construction underway.
Main contract value: Approximately $1.24 billion.
Existing Uthmaniyah gas intake: Approximately 1.2 billion cubic feet per day.
Existing Shedgum gas intake: Approximately 870 million cubic feet per day.
Earlier technical design: Gas separation at approximately 150psig and compression to 1,000psig.
Project Team
Owner: Saudi Aramco
Main EPC contractor: Saipem Nasser Saeed Al-Hajri Contracting Company (SNSH).
International EPC partner: Saipem
Saudi EPC partner: Nasser Saeed Al-Hajri & Partners Company for Contracting (NSH).
National programme sponsor: Saudi Aramco, through its National EPC Champion programme.
Early works contractor: Al-Shalawi International Company Trading and Contracting.
Leave a Reply