Saudi Arabia plans $110 bln investment to develop al-Jafurah gas field

An Aramco employee is seen at the Natural Gas Liquids (NGL) facility at Aramco's Shaybah oilfield in the Empty Quarter. (Illustrative photo: Reuters)

Saudi Arabia said it is ushering in a new era in gas as it announced plans to develop the al-Jafurah field in the eastern region with a $110 billion investment and which will make it the Kingdom’s largest non-conventional and non-associate gas field, the country’s Higher Committee for Hydrocarbons said in a statement.

After a meeting chaired by Saudi Arabia’s Crown Prince Mohammed bin Salman, the committee said the al-Jafurah basin would be 170 km in length and 100 km in width.

The volume of gas resources in the field deposits is estimated at 200 trillion cubic feet of wet gas that contains gas liquids for the petrochemical industries and high-value capacitors, according to the statement carried by the Saudi Press Agency.

“It will make the Kingdom one of the most important gas producers in the world complementing the Kingdom’s position as the most important oil producer,” The Crown Prince said.

“The development of the field along with the Kingdom's programs in developing renewable energies will achieve the best mix of energy consumption locally and support its record in protecting and sustaining the environment,” he added.

Crown Prince Mohammed bin Salman also praised the efforts of Saudi Aramco in developing the field, with investments amounting to $110 billion.

Development of the al-Jafurah Basin is expected to gradually increase the field's production of gas to reach on development completion to 2.2 trillion cubic feet per year in 2036, representing about 25 percent of current production.

The field is predicted to produce about 130,000 barrels per day of ethane, representing about 40 percent of the current production, and about 500,000 barrels per day of gas liquids and condensates required for the petrochemical industries, representing about 34 percent of the current production.

“HRH Crown Prince directed that the priority of allocating the field's production of gas and its liquids shall be given to the local sectors operating in industry, electricity, water desalination, mining, and others, in order to keep pace with the ambitious growth rates according to the Kingdom Vision 2030,” according to SPA’s statement.
 

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Last Update: 03:02 KSA 06:02 - GMT 03:02
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