Jafurah fifth expansion phase is moving toward a major construction contract award as negotiations advance for three gas compression plants. The expansion forms part of Saudi Arabia’s broader effort to increase unconventional gas production and strengthen domestic energy supply. According to MEED, Larsen & Toubro Energy Hydrocarbon (L&TEH) has emerged as the leading contender for the main EPC contract.
Jafurah fifth expansion phase enters final contract race
The planned construction package covers three gas compression plants within the Jafurah basin in Saudi Arabia’s Eastern Province. Each facility will process up to 200 million cubic feet of gas daily. Together, the plants could therefore provide 600 million cubic feet per day of additional processing capacity.
MEED reports that negotiations between Aramco and L&TEH have reached an advanced stage. Sources indicate that the Indian contractor is currently in pole position for the award. However, Aramco has not formally announced the contract winner.
China Petroleum Engineering & Construction Company previously held a favorable position after the initial technical evaluation. Nevertheless, negotiations with other bidders subsequently changed the competitive position.
The main EPC tender followed a solicitation of interest exercise conducted in November 2025. Contractors submitted their proposals by July 19, 2026, following a deadline extension.
Jafurah fifth expansion phase strengthens gas infrastructure
Wood Group completed the front-end engineering and design for the fifth expansion phase. Consequently, the project has progressed from early engineering into the contractor selection stage.
Importantly, no separate contract value has been disclosed for the fifth expansion phase. Therefore, the $100bn figure refers to Jafurah’s expected overall lifecycle investment, not this specific construction package. Aramco expects total Jafurah investment to exceed $100 billion across its development program.
The wider Jafurah basin spans approximately 17,000 square kilometers. It contains an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock-tank barrels of condensate.
Meanwhile, the development is already moving through several construction phases. L&TEH has started EPC work on the fourth expansion phase, which includes two compression plants.
The fourth phase could be worth approximately $1.5 billion, according to earlier industry estimates. However, that figure should not be attributed to the fifth phase.
Saudi Aramco’s expanding gas infrastructure programme also extends beyond Jafurah, with the Marjan field development receiving new engineering work for offshore processing, gas compression and power systems. The latest assignment strengthens infrastructure supporting the wider Marjan development, which formed part of Aramco’s earlier $18 billion Marjan and Berri investment program.
Jafurah expansion supports 2030 production targets
The fifth phase follows earlier investments designed to expand Jafurah’s processing and production infrastructure. Aramco awarded 16 contracts worth about $12.4bn for the second expansion phase in June 2024.
Additionally, the third expansion phase has an estimated $2.24bn EPC value. A consortium of Técnicas Reunidas and Sinopec Group received a non-binding letter of intent for that package.
Jafurah began gas production in December 2025 through its first development phase. The initial gas processing plant provides 450 million cubic feet per day of capacity.
Aramco ultimately targets 2 billion standard cubic feet per day of sales gas by 2030. The company also targets 420 million standard cubic feet per day of ethane and about 630,000 barrels per day of high-value liquids.
The company has also raised its broader sales gas production capacity target by approximately 80% from 2021 levels. Jafurah represents an important component of that strategy.
Furthermore, the sixth Jafurah expansion phase has entered contractor interest proceedings. Its proposed scope similarly covers three compression plants, each capable of processing 200 million cubic feet daily.
Also read: Dorra Gas Field: Técnicas Secures $1.6bn Onshore Construction Deal across Saudi-Kuwait Neutral Zone
Project Fact Sheet
Project: Jafurah fifth expansion phase
Location: Jafurah basin, Eastern Province, Saudi Arabia
Development: Jafurah unconventional gas development program
Project focus: Gas compression infrastructure construction
Main scope: Engineering, procurement and construction of three gas compression plants
Capacity per plant: 200 million cubic feet per day
Combined capacity: 600 million cubic feet per day
Contract status: Main EPC award approaching
Leading bidder: Larsen & Toubro Energy Hydrocarbon
Previous leading bidder: China Petroleum Engineering & Construction Company
EPC tender: Issued during the first quarter of 2026
Bid deadline: July 19, 2026
FEED: Completed by Wood Group
Separate Phase 5 cost: Not publicly disclosed
Wider Jafurah investment: More than $100 billion expected over the project lifecycle
Basin area: Approximately 17,000 square kilometers
Estimated raw gas resources: 229 trillion standard cubic feet
Target sales gas production: 2 billion standard cubic feet per day by 2030
Estimated condensate resources: 75 billion stock-tank barrels
Target ethane production: 420 million standard cubic feet per day by 2030
Target high-value liquids: Approximately 630,000 barrels per day by 2030
First Jafurah gas production: December 2025
Project Team
Developer and project owner: Saudi Aramco
Main EPC frontrunner: Larsen & Toubro Energy Hydrocarbon
Previous EPC frontrunner: China Petroleum Engineering & Construction Company
FEED contractor: Wood Group
Related Phase 3 EPC consortium: Técnicas Reunidas and Sinopec Group
Related Phase 4 EPC contractor: Larsen & Toubro Energy Hydrocarbon
Project location authority: Saudi Arabia’s Eastern Province
Leave a Reply