Aramco is advancing its strategy to significantly increase gas processing capacity, with the expansion of the Shedgum gas compression plant being a key component. The company's current capacity is 19.1 billion cubic feet per day, and it aims for an 80% growth in sales gas production capacity between 2021 and 2030.

Bidding Process for Shedgum Expansion

Technical and commercial offers for the Shedgum expansion have been submitted by three international contenders. The bidders are a consortium of Spain's Tecnicas Reunidas and China's Sinopec; China Petroleum Engineering & Construction Corporation (CPECC); and India's Larsen & Toubro (L&T). The project is considered a fast-track priority for Aramco, with an award decision expected within weeks. The exact incremental capacity targeted for Shedgum was not confirmed.

Shedgum Plant Background and Capacity

The Shedgum facility, which began operations in 1980 with an initial capacity of 1.6 billion cubic feet per day, has undergone multiple expansions. Its current processing capacity is now above 2 billion cubic feet per day, and it also handles substantial volumes of natural gas liquids.

Broader Gas Expansion Strategy

Aramco's extensive gas processing network includes facilities at Berri, Fadhili, Haradh, Hawiyah, Khursaniyah, Midyan, Shaybah, Uthmaniyah, Wasit, and unconventional resource sites at Jafurah, North Arabia, and South Ghawar. The expansion drive aims to meet rising domestic gas demand, thereby freeing up more crude oil for export. In parallel with the Shedgum tender, Aramco is running a separate bid process for expanding the Uthmaniyah gas plant and has recently launched the bid process for the fifth development phase of its Jafurah unconventional project.