Daily Newsletter

15 November 2023

Daily Newsletter

15 November 2023

Aramco begins unconventional gas production at South Ghawar field

The company plans to produce around 750 million cubic feet per day (mcfd) of raw gas from the South Ghawar field.

Archana Rani November 15 2023

Saudi Arabian oil giant Aramco has commenced unconventional tight gas production from its South Ghawar field located 200km east of Riyadh in Al Hasa Province.

The move is part of Aramco’s efforts to boost gas production by more than half from 2021 levels through 2030.

Aramco said the facilities at the South Ghawar operation have the capacity to process 300mcfd of raw gas and 38,000 barrels per day of condensate.

The Saudi state energy company is planning to more than double South Ghawar’s processing capacity to 700mcfd in the near future to meet surging gas demand in the country.

Aramco upstream president Nasir Al-Naimi said: “This first production of unconventional tight gas from South Ghawar is a milestone that demonstrates real progress on our gas expansion strategy, which we believe has a role to play in meeting the kingdom’s needs for lower-emission energy and supporting growth in the chemicals sector.

“The ability to commence production two months ahead of schedule and below budget is testament to the unwavering dedication of our people and their determination to continuously enhance our upstream operations.”

Aramco’s tight sand gas production from South Ghawar marks its second such production from an unconventional asset, followed by gas production at the North Arabia field in 2018.

Currently, the company is moving ahead with development of the Jafurah unconventional gas field, reputed to be the Middle East’s largest liquid-rich shale gas play.

In October 2023, Saudi Aramco partnered with Enowa to set up a synthetic electro-fuel (e-fuel) demonstration facility.

It will be located in Enowa’s Hydrogen Innovation and Development Center.

Most O&G majors have set net zero targets, but few include Scope 3 emissions

GHG emissions generated by O&G operations accounted for 15% of total energy-related emissions worldwide in 2022. A further 40% of such emissions came from the use of oil and gas for power generation, heating, vehicle fuel, and industrial processes. Only 6 companies have targets covering Scope 3 emissions. To reduce Scope 3 emissions, O&G companies are switching their products to lower-carbon sources of energy including hydrogen, LNG, biofuels, and renewables.

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