State-backed energy titan Saudi Aramco took a decisive step forward in its $100 billion unconventional gas expansion strategy on Friday, finalizing major engineering, procurement, and construction (EPC) contracts for the second phase of the colossal Jafurah gas field while cementing long-term liquefied natural gas (LNG) supply agreements with utility consortiums across Europe and East Asia.
Situated in Saudi Arabia's Eastern Province, the Jafurah basin is the largest liquid-rich shale gas play in the Middle East, holding an estimated 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. The newly awarded multi-billion-dollar infrastructure packages cover gas compression facilities, pipeline networks, and expansion of the Riyas Natural Gas Liquids (NGL) fractionation plant.
Jafurah Unconventional Gas Basin Anchors 60% Production Surge by 2030
With these capital commitments, Aramco has revised its natural gas production growth target upward, aiming to boost sales gas output by more than 60 percent by 2030 compared to 2021 baseline levels. Once Jafurah reaches peak sustainable output of two billion standard cubic feet per day, it will also yield vast volumes of ethane and natural gas liquids critical for the Kingdom's burgeoning petrochemicals sector.
Complementing its domestic upstream build-out, Aramco has aggressively expanded its international LNG trading and liquefaction portfolio. Building upon its recent equity investments in MidOcean Energy and U.S. Gulf Coast LNG terminals, the company inked long-term offtake frameworks to deliver reliable low-carbon transition fuel to industrial power grids in Japan, South Korea, and Germany.
“Our expansion in unconventional gas and global LNG supply is pivotal to meeting rising worldwide power demand while supporting lower-carbon energy transitions across our global client base.”
International LNG Joint Ventures Expand Aramco's Global Footprint
Inside the Kingdom, the surge in natural gas availability is the cornerstone of the Ministry of Energy's Liquid Displacement Program. By transitioning domestic electricity generation and water desalination plants from burning crude oil and heavy fuel oil to cleaner natural gas and renewables, Saudi Arabia expects to free up approximately one million barrels per day of crude oil for high-margin export.
Energy market analysts noted that Aramco's pivot toward gas and LNG diversifies its revenue streams ahead of projected long-term shifts in global transportation fuel demand. Moreover, the abundant gas supply will feed massive blue hydrogen and low-carbon ammonia production hubs currently under construction in Jubail and NEOM.
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