India among buyers for Aramco’s Jafurah project: Aramco reportedly sold several ultra-light crude oil cargoes from the USD 100 bn Jafurah gas project to US majors and an Indian refiner ahead of its first export later this month, Reuters reports, citing unnamed trade sources. Pricing landed at premiums of USD 2-3/ bbl to Dubai on an FOB basis.

Asia-bound: The buyers include Chevron, Exxon, and Indian Oil Corporation (IOC). Two cargoes for Chevron will load later this month and in March, with Exxon and IOC also lifting next month, according to the newswire. Chevron’s first cargo is likely headed to its South Korean joint-venture refiner GS Caltex, with the second potentially bound to Thailand for Star Petroleum Refining, two sources told Reuters.

We got an early taste of the news: Reports surfaced earlier this month that Aramco started selling condensates from Jafurah, with Asian buyers due to receive shipments late this month or early next month. Production at the gas plant — the largest liquid-rich shale gas field in the Middle East — started late last year. The first phase came online with 450 mmcf/d of capacity, and the project is expected to reach full capacity at 2 bcf/d by 2030.

SOUND SMART- Shale-style gas fields like Jafurah produce condensate alongside gas — the liquid hydrocarbon that drops out of gas once pressure falls. Condensate isn’t technically crude, but it trades like it (priced against oil benchmarks) and runs through refineries. Condensate is the first monetizable output from Jafurah, long before the gas system fully ramps.

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