Jafurah gas processing facilities have reached Phase 1 construction completion after Hyundai Engineering delivered the major gas-processing development for Saudi Aramco. The $1.65 billion development strengthens infrastructure supporting Saudi Arabia’s unconventional gas program.
Hyundai Engineering delivered the works through a joint venture with Hyundai Engineering & Construction. The consortium executed the project over 45 months between November 2021 and August 2025.
The completion marks an important construction milestone within the wider Jafurah gas field development. The facilities will process gas produced from Saudi Arabia’s largest non-associated gas development.
Hyundai Engineering leads Jafurah Gas Processing Facilities construction
Saudi Aramco awarded the original contract to the Hyundai consortium in November 2021. The contract carried an initial value of approximately $1.7 billion. The completed Phase 1 project carries a reported value of approximately $1.65 billion.
Hyundai Engineering held a 55% stake in the construction joint venture. Meanwhile, Hyundai Engineering & Construction held the remaining 45% interest.
The consortium’s construction scope covered gas processing facilities for Jafurah field production. It also included sulfur recovery units, utilities, offsite facilities and associated infrastructure.
Therefore, the completed infrastructure provides essential processing capacity within the wider Jafurah development.
Saudi Aramco previously awarded multiple engineering, procurement and construction contracts for Jafurah’s initial development. Those contracts had a combined value of approximately $10 billion.
The wider program includes gas processing, compression, NGL facilities and approximately 1,500 kilometers of pipelines. It also includes power infrastructure and other supporting facilities across the field.
Jafurah Gas Processing Facilities support Saudi gas expansion
Saudi Aramco identifies Jafurah as a major component of its long-term gas expansion strategy. The company estimates the field contains approximately 229 trillion standard cubic feet of raw gas. It also estimates around 75 billion stock tank barrels of condensate.
The field covers approximately 17,000 square kilometers in Saudi Arabia. Aramco targets sustainable sales gas production of about 2 billion standard cubic feet daily by 2030.
Furthermore, Aramco reported that Jafurah Phase 1 entered commissioning before achieving first gas in December 2025. The company included Jafurah Phase 1 among projects delivered during 2025.
The latest construction completion therefore supports an operational facility already contributing to the wider gas program.
Hyundai Engineering also secured further work at Jafurah after completing the initial development. In December 2023, the Hyundai consortium received a Phase 2 contract worth approximately US$2.3 billion.
The Phase 2 program expands processing capacity and associated sulfur infrastructure. Aramco separately awarded multiple Phase 2 contracts worth approximately $12.4 billion across the wider Jafurah development.
Consequently, construction activity at Jafurah continues beyond the completed Phase 1 facilities.
The wider development also attracted an $11 billion midstream investment transaction. Aramco completed that lease-and-leaseback agreement with an international consortium led by Global Infrastructure Partners in October 2025.
The transaction covers Jafurah gas processing and related midstream assets. It demonstrates the broader infrastructure and investment scale surrounding the field.
QatarEnergy is also advancing major offshore construction in the Gulf through the Maydan Mahzam redevelopment. The company selected PTSC and Seatrium for one principal package, while COOEC secured another package for the offshore expansion.
Also read: $1.4bn Jafurah Power Plant: KEPCO Secures Phase 2 Contract for the Saudi Gas Plant Project
Project Fact Sheet
Project: Jafurah Gas Processing Facilities Project – Phase 1
Location: Jafurah gas field, Saudi Arabia
Value: Approximately $1.65 billion
Original contract value: Approximately $1.7 billion
Client: Saudi Aramco
Construction period: November 2021 to August 2025
Construction duration: 45 months
Development type: Gas processing and associated infrastructure
Main facilities: Gas processing facilities and sulfur recovery units
Supporting works: Utilities, offsite facilities and associated infrastructure
Field area: Approximately 17,000 square kilometers
Raw gas resources: Approximately 229 trillion standard cubic feet
Condensate resources: Approximately 75 billion stock tank barrels
First gas: December 2025
Target sales gas production: Approximately 2 billion standard cubic feet daily by 2030
Wider infrastructure: Gas compression, NGL facilities and pipeline networks
Wider field investment: More than $100 billion expected across the lifecycle
Phase 2 contract value: Approximately $2.3 billion for the Hyundai consortium
Project Team
Owner: Saudi Aramco
Construction contractor: Hyundai Engineering Co., Ltd.
Joint venture partner: Hyundai Engineering & Construction Co., Ltd.
Hyundai Engineering stake: 55%
Hyundai E&C stake: 45%
Phase 1 delivery: Hyundai Engineering-led joint venture
Phase 2 contractor: Hyundai Engineering and Hyundai Engineering & Construction
Midstream infrastructure investor consortium: Global Infrastructure Partners-led consortium
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