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Aramco has started production from its Jafurah gas plant, as the first phase came online with 450 mn cf / d of capacity, according to the 2026 budget statement (pdf). Production is expected to reach 2 bn cf / d by 2030.
We had a rough idea: Earlier this month, it was reported that the USD 100 bn development — which holds an estimated 230 tn cubic feet of gas, 75 bn barrels of oil, and abundant ethane for petrochemical production — is set to begin within weeks.
SOUND SMART- Jafurah could be the largest “unconventional” gas field outside the US. It’s what the industry calls “unconventional,” or more commonly a “shale” field that demands the use of fracking techniques to bring reserves into production. It’s also the largest liquid-rich shale gas field in the Middle East, according to Aramco’s website, and the Kingdom’s largest gas field that isn’t associated with an oil field.
Aramco aims for the field’s output to surpass ExxonMobil’s combined oil and gas production by 2030. Using seawater for fracking to conserve freshwater, the company has cut costs below US gas price benchmarks and lifted its gas production growth target from 60% to 80% by 2030, expecting an additional USD 12-15 bn in annual cashflow without new capital spending.
Roster of investors: The consortium investing in Aramco’s Jafurah gas infrastructure project reportedly includes the Public Investment Fund (PIF) and other global sovereign wealth funds. Heavyweights like the PIF’s Hassana pension fund and the Arab Energy Fund will join the agreement as part of the group. Other investors include Mubadala Investment Co. and Lunate from the UAE, Abrdn Investcorp Infrastructure Partners from Bahrain, GIC from Singapore, and National Pension Service from South Korea, alongside the Bank of China, the Industrial and Commercial Bank of China, and China Construction Bank, and the Agricultural Bank of China
REFRESHER- Aramco closed an USD 11 bn lease and leaseback agreement for its Jafurah gas processing facilities with a consortium led by BlackRock’s GIP and including the PIF, Hassana, the Arab Energy Fund, and other Asian and Middle East investors during FII9. The agreement creates a new subsidiary, Jafurah Midstream Gas Company, owned 51% by Aramco and 49% by the consortium, which will lease the assets back to Aramco for 20 years. The consortium reportedly raised a financing package of nearly USD 10 bn in September to fund the investment.
