Japan’s JGC Corp has been awarded a contract by Saudi Aramco for the consutrction of shale gas facilities in the northwest of Saudi Arabia, industry sources familiar with the matter told Reuters on Thursday.
The EPC contractor will build processing facilities, wellheads and gas pipelines in the town of Turaif as part of Aramco’s mega project System A.Â
The value of the contract was estimated to be as much as $200mn, according to one source.
The contract was supposed to be awarded by the end of November 2014 with the targeted completion for the project December 2016, but the bidding process has been extended several times so far, Reuters reports.
The gas gathering facility increased its capacity to 66mn scfd (standard cubic feet per day) from 50mn scfd when the project was originally tendered.
According to Saudi oil officials, Saudi Arabia will aim to produce some 20 to 50mn cubic feet per day of shale gas in 2016 and increase this figure to 500mn cubic feet per day by 2018. The end target is the staggering 4bn cubic feet per day by 2025.
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