Aramco to split gas business to prepare for hydrogen future

RIYADH: Saudi Aramco is to split its gas production division into two, as it looks to make greater use of the fuel in the power generation and the production of the so-called blue hydrogen, Arab News reported.

Saudi Aramco declined to comment. The two new divisions will be called Southern Area Gas Operations and Northern Area Gas Operations, and will be run by Wail Al Jaafari and Jumaan Al Zahrani.

Saudi Arabia is looking to convert its power stations to natural gas, allowing it to divert as much as 1 million barrels of crude oil a day for export.

The kingdom is also preparing for growth in demand for blue hydrogen, which is created from natural gas while capturing the emissions.

Aramco’s gas production reached a record 10.7 billion standard cubic feet a day in August last year, according to the company’s 2020 annual report.