Indian engineering giant Larsen & Toubro (L&T) has won the Jafurah fourth expansion phase contract in Saudi Arabia. Consequently, the firm’s hydrocarbon subsidiary will spearhead this massive $1.57 billion development for Saudi Aramco. L&T classifies this massive engineering, procurement, and construction (EPC) order as an “ultra-mega” project. The ambitious project involves building vital onshore gas compression plants in the kingdom’s Eastern Province. Specifically, the work covers gas inlet facilities, condensate handling, and propane refrigeration systems.

To support these energy-intensive operations, L&T will also construct two 230kV extra-high-voltage substations. The contractor successfully beat major global rivals, including Samsung E&A, to secure the deal. Oil projects across the Middle East such as the Al-Zour onshore gas plant are making headway, solidifying the region’s dominance in the oil industry. The project carries an estimated budget of $3.3 billion and requires bids by 29 December. Meanwhile, a crucial contractor meeting is scheduled for 14 September to clarify technical requirements. The ambitious facility will process up to 632 million cubic feet of gas daily.

Scope of Implementation on the Jafurah Fourth Expansion Phase

The Jafurah fourth expansion phase centers on constructing two massive gas compression trains. Furthermore, each specialized plant will process up to 200 million cubic feet of gas daily. The facilities are designed to process sour gas while strictly adhering to Aramco’s safety standards. Meanwhile, the broader Jafurah basin represents the Middle East’s largest liquid-rich shale gas play. Spanning 17,000 square kilometres, the reserve holds an estimated 229 trillion cubic feet of gas. Therefore, Saudi Aramco is investing heavily to boost its overall gas production capacity by 80%.

Advancing Saudi Arabia’s Gas Vision

This latest award deepens L&T’s already significant footprint within Saudi Arabia’s energy sector. Previously, Aramco awarded L&T major packages during the second expansion phase worth $3.9 billion. Bidders submitted their final alternative commercial proposals for this fourth stage in December 2025. Aramco expects the lifecycle investment in the sprawling Jafurah basin to exceed $100 billion. Ultimately, this unconventional gas program will displace 500,000 barrels of oil daily at peak output.

Project Overview

• Project Value: $1.57 Billion
• Location: Eastern Province, Saudi Arabia
• Client: Saudi Aramco
• Main Contractor: Larsen & Toubro Energy Hydrocarbon Onshore
• Status: Award confirmed, construction underway

Scope

• Two gas compression trains (200 million cf/d each)
• Gas inlet facilities and condensate handling systems
• Propane refrigeration systems and utilities
• Two 230kV extra-high-voltage substations

Project Highlights

• Classified as “ultra-mega” contract by L&T
• Part of Saudi Arabia’s $100bn Jafurah gas program
• Award followed competitive bidding against global contractors
• Supports Saudi Arabia’s 80% gas production capacity increase

Key Developments

• Letter of award issued during India’s FY2026
• Bidders submitted alternative proposals in December 2025
• L&T previously secured $3.9bn in Jafurah Phase 2 packages
• First phase commissioned in December with 450 million cf/d capacity

Key Challenges

• Processing sour gas in compliance with stringent standards
• Executing large-scale infrastructure across desert terrain
• Meeting aggressive timelines for 2030 production targets
• Coordinating alongside parallel third and fifth expansion phases

Outlook

• Jafurah fifth expansion phase award decision imminent
• Basin expected to produce 2 billion cf/d by 2030
• Program will displace 500,000 barrels of oil daily at peak
• Saudi Aramco continues phased development through next decade