Saudi Arabia Must Look Overseas To Realize Gas Export Dream

Saudi has grand plans to make gas shortages history. It even aims to become an exporter. State firm Aramco is to invest $150bn to make this a reality, but strong domestic demand means it ought to look overseas to get in the gas export business.

Saudi Aramco plans to invest $150bn over the next 10 years in its bid to boost raw gas production to 23bn cfd by 2026 ( MEES, 15 December 2017 ). CEO Amin Nasser told the Gulf Petrochemicals and Chemicals Association (GPCA) conference in Dubai this week that output currently stands at 14bn cfd.

If accurate, this is a substantial increase on the 2017 average of 12.4bn cfd reported in the firm’s annual report ( MEES, 24 August ). The most recent gas facility to come online was the Turaif unconventional project in northern Saudi Arabia in late-2017, but at just 55mn cfd current output hardly moves the needle.

Commercial output began in May and comes from a single surface processing facility (SPF), but Aramco says four more SPFs will come online by the end of the year taking capacity to 195mn cfd. Volumes currently supply a nearby 1.39GW integrated solar CCGT plant and will help displace liquid fuels, freeing them up for export ( MEES, 10 August ). (CONTINUED - 939 WORDS)


chart Saudi Oil Burning*: Volumes On Course To Fall To Five-Year Low ('000 B/D)