Saudi Aramco plans a $110 billion investment for the development of Al-Jafurah gas field. The Saudi High Commission for Hydrocarbons assessed Aramco’s development plans.
Aramco has already received regulatory approval for the development of the Al-Jafurah gas field. The Al-Jafurah gas field is located southeast of Ghawar, the world’s biggest conventional oil field.
The gas field is expected to produce 130,000 barrels per day of ethane and 500,000 barrels per day of gas liquids as well as condensates. The field is estimated to have a gas volume of 200 trillion cubic feet. This will serve both the petrochemical and metallic industries, media reports said.
The production is expected to begin early 2024 — and reach 2.2 billion standard cubic feet per day of gas sales by 2036. Aramco will develop Al-Jafurah gas field in accordance with the highest environmental standards. It is expected to strengthen the company’s role in the global energy sector.
According to crown prince Mohammed bin Salman, the gas field would generate an estimated annual net income of $8.6 billion. It is expected to contribute $20 billion to the Kingdom’s GDP annually.
The crown prince has instructed that gas production from the Jafurah reserve should be of high priority for the use of domestic industries. Aramco’s development plan is in line with the Kingdom’s Vision 2030.
Zachary Cefaratti, CEO of Dubai-based Dalma Capital, in a note said, “Initial price action has validated our thesis that Aramco discounted its IPO price to leave upside on the table and allow regional investors to benefit from the listing of its crown jewel.”