The Jafurah fifth expansion phase is advancing towards a major construction milestone, with Saudi Aramco nearing an EPC contractor appointment. The planned development will add three gas compression plants to Saudi Arabia’s expanding unconventional gas infrastructure. Each facility will process up to 200 million cubic feet of gas daily. Consequently, the expansion will strengthen the processing capacity supporting the country’s long-term natural gas ambitions.
Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has emerged as the leading contender for the main engineering, procurement and construction (EPC) contract. According to MEED’s October 6, 2026 report, negotiations between Aramco and L&T have reached an advanced stage. Sources indicated that the Indian contractor had moved into pole position for the award. However, Aramco has not officially announced the successful contractor.
The fifth phase forms part of Jafurah’s wider development program, which carries an estimated lifecycle investment exceeding $100 billion. Importantly, this figure represents the entire development program, not the value of the fifth-phase construction contract. Aramco has not publicly disclosed the specific package value.
Jafurah fifth expansion phase targets three compression plants
The construction package centers on three gas compression plants within the Jafurah basin in Saudi Arabia’s Eastern Province. Each plant will have a processing capacity of approximately 200 million cubic feet daily. Together, the facilities will provide up to 600 million cubic feet daily of additional compression capacity.
The scope covers engineering, procurement and construction of the three facilities. These installations will support the movement and processing of unconventional gas from the extensive Jafurah resource base.
Aramco issued the main EPC tender during the first quarter of 2026. Subsequently, contractors submitted their commercial and technical proposals by July 19, following the tendering process. The company then proceeded with bid evaluation and negotiations with competing contractors.
China Petroleum Engineering & Construction Company (CPECC) previously held a favorable position following Aramco’s initial evaluation. Nevertheless, negotiations subsequently shifted the competitive position towards L&TEH. This development highlights the changing contractor landscape surrounding the major gas infrastructure package.
UK-headquartered Wood Group completed the front-end engineering and design (FEED) for the fifth expansion phase. Its engineering work established the technical foundation for the subsequent EPC procurement process. Therefore, the project has progressed beyond preliminary planning into contractor selection.
Saudi Arabia’s Jafurah expansion follows a wider regional push to strengthen energy processing infrastructure and increase hydrocarbon production capacity. Oman has pursued a similar strategy through the $2.1 billion Sohar Refinery Improvement Project, which added new processing units and increased the refinery’s capacity from 116,000 to 198,000 barrels per day. Both developments demonstrate continued investment in large-scale energy infrastructure across the Middle East.
Jafurah fifth expansion phase supports wider gas ambitions
The expansion comes as Aramco advances several construction packages across the Jafurah unconventional gas development program. In June 2026, L&TEH commenced EPC activities for the fourth expansion phase. That package involves two gas compression trains, each designed for 200 million cubic feet daily.
MEED reported that the fourth-phase contract could reach approximately US$1.5 billion. However, its final contract award and investment decision remained pending in the reported project update. Meanwhile, the third expansion phase continues advancing through EPC activities.
The third phase involves three gas compression plants with individual capacities of 200 million cubic feet daily. Its scope also includes a 230kV substation, utilities, piping systems and safety equipment. A consortium comprising Spain’s Técnicas Reunidas and China’s Sinopec received a non-binding letter of intent. The estimated contract value stands at $2.24 billion.
Beyond the fifth phase, Aramco has also advanced preparations for the sixth Jafurah expansion phase. Contractors expressed interest in that subsequent package in August 2026. Its proposed scope similarly includes three compression plants, each with 200 million cubic feet daily capacity.
Aramco began production at Jafurah in December 2025, marking an important milestone in the wider development. The initial gas processing plant has a production capacity of 450 million cubic feet daily. The company targets approximately two billion standard cubic feet daily of sales gas by 2030.
The field spans approximately 17,000 square kilometers and contains substantial unconventional hydrocarbon resources. Aramco estimates its resources at 229 trillion standard cubic feet of raw gas. It also holds an estimated 75 billion stock tank barrels of condensate.
Additionally, the development targets 420 million standard cubic feet daily of ethane. It also targets approximately 630,000 barrels daily of high-value liquids by 2030. These outputs will support domestic industries, petrochemical production and electricity generation.
The fifth expansion phase will therefore contribute to the infrastructure required for these production ambitions. Its eventual contractor appointment will establish the next major delivery milestone. Meanwhile, Aramco continues positioning Jafurah as a central component of Saudi Arabia’s expanding gas economy.
Project Fact Sheet
Name: Jafurah Unconventional Gas Development – Fifth Expansion Phase.
Owner and client: Saudi Arabian Oil Company (Saudi Aramco).
Location: Jafurah Basin, Eastern Province, Saudi Arabia.
Type: Unconventional gas development and processing infrastructure.
Stage: EPC contractor selection and advanced negotiations.
Estimated overall investment: More than $100 billion across the wider Jafurah development program.
Fifth-phase contract value: Not publicly disclosed.
Main construction scope: Engineering, procurement and construction of three gas compression plants.
Individual plant capacity: 200 million cubic feet daily.
Combined planned capacity: 600 million cubic feet daily.
Tender issuance: First quarter of 2026.
Bid submission deadline: July 19, 2026.
Expected main contractor: Larsen & Toubro Energy Hydrocarbon (L&TEH), reported frontrunner; formal appointment unconfirmed.
Front-end engineering and design: Completed.
FEED contractor: Wood Group.
Estimated gas reserves: 229 trillion standard cubic feet.
Estimated condensate reserves: 75 billion stock tank barrels.
Wider development production target: Two billion standard cubic feet daily of sales gas by 2030.
Additional production targets: 420 million standard cubic feet daily of ethane and approximately 630,000 barrels daily of high-value liquids.
Project Team
Owner: Saudi Arabian Oil Company (Saudi Aramco).
Client and EPC procurement authority: Saudi Aramco.
Leading EPC contractor contender: Larsen & Toubro Energy Hydrocarbon (India).
Previously competitive EPC bidder: China Petroleum Engineering & Construction Company (CPECC).
Front-end engineering and design consultant: Wood Group (United Kingdom).
Related fourth-phase contractor: Larsen & Toubro Energy Hydrocarbon.
Related third-phase EPC consortium: Técnicas Reunidas (Spain) and Sinopec Group (China).
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