Saudi Aramco has sealed deals for several cargos of gas condensates from its $100-billion Jafurah shale gas facility, Reuters has reported, citing unnamed trade sources. The first cargo is set to depart by the end of the month.
The deals Aramco has already secured are with U.S. companies and one Indian refiner, the Reuters sources told the publication. The U.S. buyers include Chevron and Exxon, and the Indian client is Indian Oil Corp.
The Jafurah gas field has estimated reserves of close to 230 trillion cu ft of natural gas and 75 billion barrels of condensate. It is the centerpiece of Saudi Arabia’s plan to diversify into natural gas and become a major exporter of gas commodities. Production from Jafurah is seen at 2 billion cu ft daily by 2030. When completed, the huge project is also expected to produce 420 million standard cubic feet per day of ethane, and 630,000 barrels per day of high-value liquids by 2030. Jafurah is seen as the largest shale gas project outside the United States.
Production of condensates at the Jafurah gas-processing plant began earlier this month, a couple of months after the start of gas production, at an initial rate of 450 million cu ft daily. The first cargos from the facility were committed to Asian buyers, with Aramco planning to export between four and six cargoes of condensates monthly, each of 500,000 barrels.
“Jafurah kickstarts our plan to expand our overall sales gas production capacity, which will contribute to Saudi Arabia’s growth ambitions across multiple sectors including energy, artificial intelligence, and major industries such as petrochemicals,” Aramco president and CEO Amin Nasser said upon the completion of the $11-billion Jafurah midstream deal last year. The deal features a lease and leaseback investment from a consortium led by BlackRock’s Global Infrastructure Partners.
By Irina Slav for Oilprice.com
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