The Jafurah field, a $110 billion project is expected to make Kingdom of Saudi Arabia, the country to export Gas.
Arab media reported that the project is to develop a gas field in eastern Saudi Arabia that will turn the global market on its head and make the Kingdom a gas exporter.
The Jafurah field — which lies southeast of Ghawar, the world’s largest conventional oil field — holds an estimated 200 trillion cubic feet of wet gas, and is capable of producing 130,000 barrels per day of ethane and 500,000 barrels per day of gas liquids and condensates.
Wet gas has the same basic composition as dry natural gas but with additional components. Wet gas contains around 85 percent methane and other liquid natural gases such as ethane and butane. It is these extra liquid components that make the gas wet. Depending on the area, wet gas can occur more often than dry gas. It all comes down to the chemical composition of the shale from which the gas is extracted.
The field will be representing about 40 percent of current production, and about 500,000 barrels per day of gas liquids and condensates required for the petrochemical industries, representing about 34 percent of current production.
Over 22 years, Jafurah could generate $8.6 billion a year in income and contribute $20 billion a year to the Kingdom’s GDP.
Crown Prince Mohammed bin Salman has ordered that the gas produced at the field should be prioritized for domestic industry, but analysts believe there will be a surplus available for export.
The development of the Jafurah field will have ramifications not just for Saudi Arabia and its drive toward a cleaner energy mix, but also for the global gas market, with recent discoveries in the Eastern Mediterranean rapidly reshaping economies from Cairo to Ankara and fueling fierce rivalries in the process.
On the other hand Saudi Aramco also plans to invest $110 billion in the project.
The development plans were reviewed by the Saudi High Commission for Hydrocarbons in a meeting chaired by Crown Prince Mohammed bin Salman.