Riyadh, Saudi Arabia — A historic milestone was reached today as Saudi Aramco, the state-owned oil company, signed contracts worth $25 billion for two critical energy projects. The contracts cover the second phase of the Jafurah gas field project and the third phase of the main gas network expansion project.
Jafurah Gas Field Expansion
The Jafurah gas field, located in the eastern part of Saudi Arabia, is the largest gas field in the Middle East. With a daily production capacity of 2 billion cubic feet of gas, it plays a pivotal role in meeting the Kingdom’s energy needs. Amin Nasser, the CEO of Saudi Aramco, emphasized that this expansion marks a new era of energy development in the Kingdom.
Key Points:
- Network Expansion: The gas network expansion project involves laying down 4,000 kilometers of pipelines, significantly enhancing the network’s capacity. This expansion will connect various cities across the Kingdom, including Jeddah, Jazan, and Al-Kharj.
- Industrial Growth: For the first time, business sectors in Jeddah, Jazan, and Al-Kharj will receive gas from this expanded network. This move is expected to promote industrial growth and create job opportunities for Saudi citizens.
- Electricity Generation: Nasser highlighted that the expanded gas network will contribute to the Kingdom’s ability to derive 50% of its electricity consumption from natural gas. This shift toward cleaner energy sources is crucial for sustainable development.
- Petrochemical Sector: The expansion also supports the development of the petrochemical sector. By providing a reliable supply of natural gas, Saudi Arabia can further enhance its position as a global player in petrochemical production.
- Blue Hydrogen: In addition to conventional natural gas, the Jafurah field will increase the production capacity of blue hydrogen, a low-carbon energy source. This aligns with global efforts to reduce carbon emissions and transition toward cleaner fuels.
Economic Impact
The $25 billion investment underscores Saudi Arabia’s commitment to energy diversification and economic growth. As the contracts are signed today, the Kingdom takes a significant step toward securing its energy future and contributing to global energy stability.
