Hyundai Completes Phase 1 of Jafurah Gas Processing Project

Hyundai Engineering Co., Ltd., in a joint venture with Hyundai Engineering & Construction Co., Ltd. (Hyundai E&C), has successfully completed the Jafurah Gas Processing Facilities Project – Phase 1 in Saudi Arabia for Saudi Aramco. This marks the completion of a major gas processing development supporting the Kingdom’s unconventional gas program. The Phase 1 project, with a project value of approximately US$1.65 billion, was executed over 45 months from November 2021 to August 2025. The original contract, awarded by Saudi Aramco in November 2021, was valued at approximately US$1.7 billion. Hyundai Engineering held a 55% stake in the joint venture, while Hyundai E&C held the remaining 45%. Under the project, the Hyundai consortium was responsible for the construction of gas processing facilities, sulfur recovery units, and associated utility and offsite infrastructure required to process gas produced from the Jafurah unconventional gas field. The completed facilities form part of Saudi Aramco’s wider development of the Jafurah gas field, which covers approximately 17,000 square kilometers and has estimated gas resources of around 200 trillion cubic feet. Aramco has stated that the field is targeted to reach sustainable sales gas production of approximately 2 billion standard cubic feet per day by 2030. The successful completion of Phase 1 also strengthened Hyundai Engineering’s relationship with Saudi Aramco and contributed to the company securing a follow-up contract for the Jafurah Gas Processing Facilities Phase 2 project. In December 2023, Hyundai Engineering and Hyundai E&C were awarded the Phase 2 project, valued at approximately US$2.3 billion, for additional facilities to process gas from the Jafurah field, including sulfur recovery infrastructure. The Jafurah development is a key component of Saudi Aramco’s unconventional gas program. The wider development includes gas processing, NGL fractionation, gas compression, and an extensive network of pipelines and associated infrastructure. Aramco has previously announced that contracts worth approximately US$10 billion were awarded for the initial development phase of the field. The completion of the Hyundai-led Phase 1 facilities represents a significant milestone in the development of Saudi Arabia’s largest non-associated gas field and supports the Kingdom’s objective of expanding its domestic gas supply and associated industrial feedstock.