Saudi Arabia Forges Ahead with Jafurah Shale Gas Field Development

06/08/2025 06:42 AST

Saudi Aramco is pressing ahead with one of its most ambitious energy initiatives to date: the development of the Jafurah unconventional gas field, the largest of its kind in the Middle East, as part of a broader strategy to diversify the Kingdom's energy mix and boost domestic gas output.

Located in the Eastern Province's Jafurah Basin, which spans around 17,000 square kilometers, the project is seen as a cornerstone of Aramco's transformation. The first phase is scheduled for completion in 2025, with plans to ramp up production to a sustained 2 billion standard cubic feet per day (scfd) of gas by 2030, alongside large volumes of ethane, natural gas liquids (NGLs), and condensates.

Speaking during the company's second-quarter earnings announcement on Monday, Aramco CEO Amin Nasser confirmed that development at the Jafurah Gas Plant remains on track. The company posted net profits of $24.5 billion for the quarter, down from $29.07 billion a year earlier.

Jafurah holds an estimated 200 trillion standard cubic feet of natural gas, making it the richest shale gas play in the region. Aramco plans to invest more than $100 billion over the next 15 years to fully develop the field.

At the Al-Ahsa Investment Forum 2025, Nasser said the project is expected to contribute approximately $23 billion annually to Saudi Arabia's GDP. It also aligns with Aramco's goal to increase gas production capacity by over 60% by the end of the decade.

Global partnerships
According to former Saudi oil ministry adviser Dr. Mohammed Al-Sabban, the Jafurah field contains significant unconventional gas reserves, specifically shale gas, and may open the door to further technological partnerships.

"Given the complexity of the geology, Aramco could seek international partners with advanced expertise in shale gas extraction," Al-Sabban told Asharq Al-Awsat.

He added that Saudi Arabia's simultaneous expansion in oil, gas, and renewable energy investments positions the Kingdom as a comprehensive energy provider, rather than merely an oil exporter.

Decarbonization and industrial integration
The Jafurah project is also central to Aramco's decarbonization drive, supporting the company's net-zero emissions target by 2050. It will provide high-value feedstock for the refining, processing, and petrochemicals sectors, including ethane, NGLs, and condensates.

Due to the low permeability and porosity of the basin's shale formations, the project depends on advanced horizontal drilling and hydraulic fracturing techniques to extract gas from the sedimentary rocks of the Tuwaiq Mountain.

These technical demands classify Jafurah as an unconventional field, requiring specialized equipment and risk management protocols.

Aramco began by drilling both horizontal and vertical wells after confirming vast hydrocarbon deposits, alongside developing talent and creating detailed geologic maps to guide a three-year appraisal phase.

Billion-dollar contracts
On the ground, Aramco has introduced a suite of innovations to boost efficiency and safety. It has deployed mobile drilling rigs that can be relocated in one piece, and implemented advanced fracking practices that allowed the company to drill and complete wells more than five times faster, without traditional rigs, cutting costs and accelerating production timelines.

More than $10 billion in contracts have been awarded for the project's initial phase, covering the construction of a fully integrated gas supply system. This includes a gas processing facility, an NGL fractionation plant, a gas compression network, and about 1,500 kilometers of pipelines for transportation and distribution, as well as a central power station and electrical infrastructure.

Turning point
Jafurah is not only a gas development megaproject; it is poised to reshape Saudi Arabia's energy security. Once fully operational, it is expected to offset the equivalent of 500,000 barrels per day of crude oil used for domestic power generation, freeing up those volumes for value-added sectors such as refining and petrochemicals.

By 2030, the field is projected to produce more than 420 million scfd of ethane and up to 630,000 barrels per day of NGLs and condensates, helping to meet surging feedstock demand in the petrochemical industry.

The project is also expected to complement Aramco's broader plans to scale up production of low-carbon hydrogen and blue ammonia.

Asharq Al Awsat