Aramco begins exports from vast Jafurah project

Saudi Aramco has begun selling oil produced from its Jafurah field, marking the first reported export linked to the kingdom’s $100 billion unconventional gas development and signalling a new phase in one of the world’s largest energy projects.

The state-controlled energy giant confirmed that condensate and associated liquids from Jafurah have entered commercial channels, underscoring Riyadh’s push to monetise resources from a field primarily designed to transform the country’s gas balance. The move highlights how the vast development in the Eastern Province is starting to generate revenue streams even as its core objective remains boosting domestic gas output.

Jafurah, often described by Aramco as the largest liquid-rich shale gas play in the Middle East, spans roughly 17,000 square kilometres southeast of Ghawar. Company estimates place resources at around 200 trillion cubic feet of raw gas, alongside significant volumes of ethane and condensates. While the project is centred on gas, the presence of valuable liquids means it can also contribute to Saudi crude and refined product flows.

Aramco has previously outlined a phased investment plan that could exceed $100 billion over the life of the development. The first phase, involving processing facilities, pipelines and compression systems, is expected to enable sales gas production of about 2 billion standard cubic feet per day by the end of this decade. Output is projected to ramp up to around 3.8 billion standard cubic feet per day by the early 2030s.

Industry analysts say the sale of oil-linked liquids from Jafurah at this stage reflects the integrated nature of the scheme. Shale gas extraction typically yields condensate and natural gas liquids, which can be blended into crude streams or processed separately. For Saudi Arabia, such volumes offer additional export flexibility at a time when the kingdom is balancing its role in OPEC+ supply management with domestic economic diversification goals.

Energy markets have been closely watching Jafurah’s progress as part of Saudi Arabia’s broader strategy to expand gas production and reduce the burning of crude oil in power generation. By displacing crude with gas in domestic utilities and industrial facilities, Aramco aims to free up more oil for export or value-added refining. The development is also central to plans for blue hydrogen and petrochemicals, given its substantial ethane component.

Executives have repeatedly described Jafurah as a cornerstone of the kingdom’s energy transition narrative, even as Saudi Arabia remains one of the world’s largest crude exporters. Amin Nasser, Aramco’s chief executive, has said the field will help position the company as a leading global gas supplier and support lower-carbon energy solutions. The gas produced is expected to feed power plants, desalination facilities and industrial clusters, while reducing reliance on imported liquefied natural gas.

The start of commercial sales from the field comes amid a period of heightened scrutiny over Aramco’s capital allocation. The company has faced questions from investors about balancing shareholder returns with large-scale investments at home and abroad. In financial disclosures over the past year, Aramco reported strong cash flows but also flagged the scale of spending required for upstream expansion and downstream integration.

Jafurah’s development aligns with the kingdom’s Vision 2030 programme, which seeks to diversify the economy beyond oil. Expanding the gas sector is seen as essential to underpin industrial growth, including chemicals and mining, while lowering the carbon intensity of domestic energy consumption. Government officials have stressed that unconventional gas resources such as Jafurah will play a key role in meeting rising electricity demand without eroding export capacity.

Market participants note that unconventional gas production presents technical and cost challenges distinct from Saudi Arabia’s traditional reservoirs. Hydraulic fracturing and horizontal drilling are required to unlock shale resources, techniques more commonly associated with North American producers. Aramco has invested heavily in technology partnerships and local supply chains to support the project, aiming to build domestic expertise in shale development.

The company has also awarded major engineering, procurement and construction contracts for gas processing plants and associated infrastructure. International service providers and local contractors have been engaged in building compression facilities, gas gathering systems and pipelines connecting Jafurah to the Master Gas System. This network will distribute processed gas across the kingdom.

From a global perspective, the field’s liquids output may not dramatically alter oil supply dynamics, given Saudi Arabia’s overall production capacity of around 12 million barrels per day. However, incremental volumes from Jafurah could enhance blending options and feedstock availability for refineries and petrochemical complexes. Analysts suggest that as gas production ramps up, associated liquids could become a steady supplementary stream.

The timing of the first exports also coincides with evolving global energy demand patterns. Gas consumption has been rising in Asia and the Middle East, while policymakers debate pathways to net-zero emissions. Saudi Arabia has argued that expanding gas production can contribute to emissions reductions when it replaces higher-carbon fuels. Critics counter that large hydrocarbon investments risk locking in long-term fossil fuel dependence.