A recent revelation has confirmed that Saudi Arabia’s Jafurah field has experienced a significant increase in its gas reserves. The nation’s Energy Minister, Prince Abdulaziz bin Salman, announced that the field’s reserves have grown by an additional 15 trillion standard cubic feet of gas. This brings the total reserves at Jafurah to a staggering 229 trillion cubic feet of gas, along with 75 billion barrels of condensates.
The development of unconventional gas resources, which includes those found in shale formations, is a priority for Saudi Arabia. Such resources demand more sophisticated extraction techniques, akin to those employed in the shale gas industry of the United States. Jafurah stands as the largest unconventional non-associated gas field within the kingdom and is regarded as one of the most significant shale gas projects globally, outside the United States.
Previously in 2020, the investment estimate for the Jafurah field was pegged at $110 billion. Saudi Aramco, the state oil company, has projected that by 2030, the field will yield approximately 420 million cubic feet per day of ethane. Additionally, the production of gas liquids and condensates is expected to reach around 630,000 barrels per day by the same year.
Meanwhile, amidst fluctuating global gas prices, Qatar has declared an increase in its gas production. This move is part of a strategic plan to expand its extraction of the resource despite intense competition from other major players, including the United States. QatarEnergy’s CEO, Saad al-Kaabi, detailed a new expansion phase for liquefied natural gas production, which is set to augment the nation’s capacity by an extra 16 million tonnes per annum (mtpa), culminating in a total capacity of 142 mtpa.
This announcement occurs in the context of U.S. gas prices hovering around historically low levels when adjusted for inflation, following a decade of substantial output growth which has positioned the U.S. as a leading oil and gas exporter.