Saudi Aramco has extended the deadline for companies to bid for work on its unconventional gas facilities in the northern town of Turaif, Reuters reports.
Bids for the System A project, which involves building processing facilities, wellheads and gas pipelines, were originally due to close in early December but the deadline has been extended to 15th of March.
Several companies have prequalified for another unconventional gas project called System B, also in the north of the Kingdom and five times as big as System A, according to one source.
Saudi Arabia, which has significant domestic energy demands, suffered serious gas shortages earlier in February. It has invested billions in developing its unconventional resources in an attmept to raise production.
Saudi Aramco’s chief executive Khalid al-Falih said at a conference in Riyadh last month that Aramco had invested $3bn in developing unconventional gas resources and had earmarked an additional $7bn for it.
“Saudi Arabia will be the next frontier after the U.S., where shale and unconventional will make a significant contribution to our energy mix, especially gas,” he said.
Significant potential for unconventional gas has been seen in the Eastern Province and the Empty Quarter in the north.
Saudi Oil Minister Ali al-Naimi has estimated the country’s unconventional gas reserves – those held in reservoirs that have not traditionally been exploited – at over 600 trillion cubic feet, more than double its proven conventional reserves, Reuters reports.
