Global energy giant, “Aramco” (2222), has inked contracts for gas projects worth over USD 25 billion as part of its expansion in this globally growing field.
Significant Interest in Gas
The company’s CEO, Amin Nasser, explained that the contracts pertain to the second phase of developing the massive unconventional gas field, Jafurah.
Additionally, they include the third phase of expanding the main gas network in Saudi Aramco.
So What
The stock of the world’s largest oil company saw a 0.7% uptick at the start of trading on Monday on news of sealing the massive gas contracts.
The goal is to support the growth of its gas production and diversify its portfolio.
This aligns with Aramco’s aim to expand its gas production by more than 60% by 2030 from 2021 levels.
Some Context
In an interview with Al Arabiya Business, Nasser highlighted the significance of the projects.
He mentioned that gas helps reduce liquid burning, given that there are a million barrels burned in the Kingdom.
He added that renewable energy sources including solar and wind will replace liquid burning.
This will provide significant economic returns and reduce the Kingdom’s overall carbon footprint.
It is also expected that business sectors in the cities of Jeddah, Jazan, and Al Kharj will receive gas from this system for the first time.
This will boost the growth of the industrial sector and provide job opportunities for Saudis.
He also noted that the expansion will significantly help the country obtain 50% of its electricity consumption from this gas, in addition to contributing to the development of the petrochemical sector.
Finally, he explained that the development of the Jafurah field, the largest in the Middle East, boasts a daily capacity of 2 billion cubic feet.
This will enhance Saudi Arabia’s capacity as one of the largest gas producers in the world, establishing a new era of energy domestically.
Now What
Aramco expects the total investment in Jafurah to exceed USD 100 billion, making it one of the world’s largest
The company projects production to reach a sustainable sales gas rate of 2 billion standard cubic feet per day by 2030.
In addition to “very large quantities” of ethane, natural gas liquids, and condensates.
