Saudi Arabia plans $110 billion investment in Jafurah unconventional gas field: SPA

[IsailedawayfromFR]

Saudi Aramco plans to invest $110 billion to develop unconventional gas reserves in Saudi Arabia’s Jafurah field, the state news agency SPA said on Friday.

It said the development plans were reviewed by the Saudi High Commission for Hydrocarbons in a meeting chaired by Crown Prince Mohammed bin Salman.

The Jafurah deposits are estimated to hold 200 trillion cubic feet of wet gas and the phased development of the field is expected to gradually increase production to 2.2 trillion cubic feet by 2036 if fully completed, SPA said.

It said the field was expected to produce 130,000 barrels per day of ethane and 500,000 bpd of gas liquids and condensates.

The economics for this development have to be quite a lot lower than what the country typically expects.

Costs are enormous here compared to the oil developments they have their hands in to date.
https://www.reuters.com/article/us-saudi-gas-jafurah/saudi-arabia-plans-110-billion-investment-in-jafurah-unconventional-gas-field-spa-idUSKBN20F2NC

[thackney]

Motivations also include ending petroleum as power generation.  Natural Gas that is used for Power Generation frees up more oil for export.



https://www.eia.gov/international/analysis/country/SAU

Plus the Nat Gas Liquids.  That is a growing market.  It has kept my area booming for years with no end in sight.

[IsailedawayfromFR]

Motivations also include ending petroleum as power generation.  Natural Gas that is used for Power Generation frees up more oil for export.



https://www.eia.gov/international/analysis/country/SAU

Plus the Nat Gas Liquids.  That is a growing market.  It has kept my area booming for years with no end in sight.

I agree that burning oil to generate power is burning a much higher btu value resource compared to natural gas and is a motivator.

There is also the fact that abundance of cheap natural gas can be used to make more fresh water via desalinization.