Jafurah Gas Project Phase 1 Completed in Saudi Arabia

A joint venture led by Hyundai Engineering, alongside Hyundai Engineering & Construction, has completed Phase 1 of the Jafurah Gas Processing Facilities Project in Saudi Arabia. The milestone was reached in August 2025 after a 45-month execution period that began in November 2021. The completed phase is valued at approximately USD 1.65 billion, equivalent to around SAR 6.19 billion at an indicative rate of USD 1 = SAR 3.75.

The Jafurah gas field is located roughly 150 kilometres southwest of Dammam in the Eastern Province. Phase 1 covers gas processing facilities, sulfur recovery units (SRU), and the associated utilities and offsite infrastructure needed to process gas drawn from the Jafurah unconventional gas field. Within the joint venture, Hyundai Engineering & Construction holds a 45% stake in the Phase 1 works.

The Phase 1 contract was originally awarded in November 2021 with an initial value of about USD 1.7 billion, later reported at USD 1.65 billion upon completion. The project is a central piece of Saudi Arabia's unconventional gas program, adding midstream processing capacity for shale-type gas produced at Jafurah.

Why it matters

Expanding domestic gas processing supports the Kingdom's wider energy diversification goals and can free up more resources for local industries and power generation over time. For residents and workers in the Eastern Province, large industrial projects of this scale typically contribute to employment, supply chains, and regional economic activity.

This is a corporate engineering, procurement and construction (EPC) project handled between the operator and its investors. It does not involve any public-facing procedures or fees on Saudi e-government platforms, and no SAR-denominated user fees or validity periods apply to individuals in connection with it.

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