In a move that’s much touted as potentially reshaping the energy landscape of the Middle East, Saudi Aramco says it is making progress on its ambitious $100 billion Jafurah unconventional onshore gas project. This development is advertised to have far-reaching implications for the broader global energy market and could represent a major step in Saudi Arabia’s energy transition strategy.
Project Overview
The Jafurah basin, located in the Eastern Province of Saudi Arabia, is believed to be the largest known free gas field in the kingdom. With an estimated 200 trillion cubic feet of gas in place, it’s the largest liquids-rich shale gas play in the Middle East. The project aims to:
- Produce up to 2 billion cubic feet per day (Bcfd) of gas by 2030
- Increase Aramco’s overall gas production capacity by 50% by 2030
- Provide feedstock for hydrogen and ammonia production
- Meet growing local energy demand
- Free up nearly 1 million barrels per day of oil from domestic use, boosting export capacity
Development Phases
The project is being developed in two main phases:
- Exploration Phase: This includes geological and geophysical assessments, seismic surveys, and drilling of exploratory and assessment wells.
- Development Phase: This encompasses the construction of wellhead platforms, jackets, flare systems, interconnecting pipelines, and associated facilities. A key component is an RO desalination plant to treat seawater for injection into the Jafurah basin to dislodge shale gas.
Jafurah Gas Terminal
The heart of the project is the Jafurah Gas Terminal, which will include:
- Gas processing facilities with two trains, each handling about 550 million cubic feet per day of raw gas
- Utility package including inlet and export facilities, sulfur recovery units, and flare systems
- Compression facilities aimed at producing up to 600 MMcfd of gas and 150,000 barrels per day of condensate and NGL
Project Timeline and Progress
- The first phase of the Jafurah gas plant is expected to come online by 2025
- The second phase is slated for completion by 2027
- Full field development, reaching 2 Bcfd production capacity, is targeted for 2030
Developments
Saudi Aramco has been actively awarding contracts for various aspects of the project:
- In November 2021, contracts valued at $10 billion were awarded to TAQA, Baker Hughes, SLB, Halliburton, and NESR for the gas plant, compression facilities, and related infrastructure.
- Worley secured a key contract in July 2022 for project management services.
- Most recently, in August 2023, Arabian Drilling won contracts worth $800 million to supply 10 new land rigs for the unconventional gas program.
This groundbreaking project underscores Saudi Arabia’s commitment to diversifying its energy portfolio and reducing its reliance on oil. If all goes well and some of the bumps or delays can be avoided, the Jafurah project may turn out to serve, as Saudi Aramco claims, as a prime example of how advanced geological understanding, cutting-edge technology, and strategic planning can unlock vast energy resources and drive economic growth.
We’ll continue to monitor the progress of this significant project and provide updates as it unfolds.
