Saudi Arabia Advances Jafurah Gas Phase 2

Saudi Arabia has moved ahead with the second phase of developing the Jafurah unconventional gas field, one of the largest projects of its kind in the country, aimed at increasing domestic natural gas supply and supporting industrial feedstock availability. A package of 16 contracts has been awarded for the phase, with a combined value of about USD 12.4 billion.

The new contracts cover gas compression, plant expansion, pipelines, and related infrastructure. Phase 2 includes an expansion of the Jafurah Gas Plant with new processing trains, utilities, sulfur recovery, export facilities, and associated compression facilities. It also involves the construction of Riyas NGL fractionation facilities in Jubail, which will include fractionation trains, utilities, storage, and export facilities to process natural gas liquids received from Jafurah.

Total lifecycle investment in the Jafurah field is currently estimated at between USD 100 billion and USD 110 billion, with indicative capital for Phase 2 alone put at roughly USD 35 to 40 billion. The phase is scheduled to support a ramp-up of sales gas production toward about 2 billion cubic feet

As of 2026, Phase 1 facilities are already onstream. Sales gas began at around 200 million standard cubic feet with total field output rising toward about 2 billion cubic feet Raw gas processing capacity tied to Jafurah and related plants, including Tanajib, is expected to reach about 2.6 billion standard cubic feet

Phase 2 also includes a combined-cycle cogeneration plant under a contract of about USD 1.4 billion, targeting installed power capacity of roughly 331 megawatts and steam generation of around 465 tonnes with commercial operation expected around 2029. For residents and businesses, the project points to greater long-term availability of natural gas and industrial feedstock, supporting the wider economic diversification goals of the Kingdom.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving