Saudi Aramco’s $100 billion Jafurah shale gas project begins production
Aramco CEO Amin Nasser has called Jafurah a crown jewel in the company’s portfolio.
RIYADH
The first phase of oil giant Aramco’s Jafurah gas plant is complete and production has begun with a capacity of 450 million cubic feet per day, the Saudi finance ministry said on Tuesday.
In its 2026 budget statement, the ministry listed the milestone as an achievement reached in 2025.
Jafurah is potentially the biggest shale gas project outside the US and is expected to reach sustainable production of two billion cubic feet per day by 2030.
Aramco CEO Amin Nasser, who has called Jafurah a crown jewel in the company’s portfolio, said during an earnings call last month the first phase was on track for completion by the end of this year.
Aramco earlier this year raised $11 billion from a lease and leaseback agreement of its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners, part of BlackRock.
The $100 billion Jafurah project, estimated to contain 229 trillion standard cubic feet of raw gas, is central to Aramco’s ambitions to become a major global player in natural gas and boost its gas production capacity.
Its output will help free up crude for export that is currently used for domestic power generation.
Jafurah is potentially the biggest shale gas project outside the US.
www.thearabweekly.com
Aramco's Jafurah gas plant begins output, Saudi finance ministry says
By Reuters
December 3, 2025 3:05 PM GMT+1 Updated December 3, 2025
View attachment 163556
FILE PHOTO: The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
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DUBAI, Dec 2 (Reuters) - The first phase of oil giant Aramco's
(2222.SE), opens new tab Jafurah gas plant is complete and production has begun with a capacity of 450 million cubic feet per day, the Saudi finance ministry said on Tuesday.
J
afurah is potentially the biggest shale gas project outside the U.S. and is expected to reach sustainable production of 2 billion cubic feet per day by 2030. The finance ministry, in its 2026 budget statement, listed the milestone as an achievement reached in 2025.
Jafurah's gas output will be used for domestic power generation, freeing up crude for export that is currently used for power in the kingdom. Aramco has said its unconventional gas programme at peak production is expected to generate electricity equivalent to displacing 500,000 barrels per day of oil.
The $100 billion Jafurah project, estimated to contain 229 trillion standard cubic feet of raw gas, is central to Aramco's ambitions to become a major global player in natural gas and boost its gas production capacity.
Aramco's gas production was 12.6 billion cubic feet per day at the end of September, up from 12 bcfd a year earlier. Aramco last month said it was boosting its gas growth target to 80% above 2021 levels from a previous targeted growth of 60%. In its 2021 annual report, Aramco said it reached a single-day record gas output at the time of 10.8 bcfd.
Aramco CEO Amin Nasser, who has called Jafurah a crown jewel in the company's portfolio, said during an earnings call last month the first phase was on track for completion by the end of this year.
Aramco earlier this year
raised $11 billion from a lease and leaseback agreement of its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners, part of BlackRock
(BLK.N), opens new tab.
Aramco declined to comment.
Saudi Arabia kicks off gas production from $100 billion-plus megaproject
Aramco carrying out phased development of $100 billion-plus Jafurah project
View attachment 163557Aramco chief executive Amin Nasser.Photo: AFP/SCANPIX
Aramco carrying out phased development of $100 billion-plus Jafurah project
www.upstreamonline.com
Location:
With the EU banning Russian gas at the latest by the end of 2027, KSA will definitely replace some of the Russian gas to EU. The surplus that is not used for local consumption.
Even though KSA has some of the largest gas reserves on the planet, with much exploration yet to be done and new gas findings being found on an yearly basis, KSA has only used gas for local energy consumption.
With the growth of local renewables (solar, wind, hydropower) which is some of the cheapest in the world, if not the cheapest, there should be a lot of room for exporting LNG, CNG and HGL's.
Saudi Arabia Awards Five Renewables Projects Worth $2.4 Billion
By
Charles Kennedy - Oct 28, 2025, 11:30 AM CDT
Saudi Arabia has awarded one wind power and four solar power projects in the country worth a total estimated investment of $2.4 billion (9 billion Saudi riyals), the official Saudi Press Agency
reports.
Saudi Power Procurement Company, the principal buyer of the projects, awarded the five projects with a total capacity of 4.5 gigawatts (GW), as part of the sixth phase of the Kingdom’s National Renewable Energy Program.
Saudi Arabia, the world’s biggest crude oil exporter, aims to hike the share of
renewable electricity generation as part of its Vision 2030 economic development program.
The Kingdom’s National Renewable Energy Program is aimed at diversifying the energy mix used in electricity production by increasing the shares of gas and renewables in it.
“The kingdom aims at have the energy mix that is optimal, most efficient, and least costly, by replacing liquid fuel with natural gas, in addition to renewables, which are going to make up around 50% of the energy mix used to produce electricity by 2030,” the Energy Ministry says.
Of course, replacing liquid fuels and direct crude burn with wind and solar electricity would help Saudi Arabia free up more crude oil for exports, the pillar of its economy and budget revenues.
In the latest $2.4-billion renewable energy tender, Saudi Power Procurement Company awarded a project for the Dawadmi Wind IPP Plant in the province of Riyadh with a capacity of 1.5 GW. The winning bid from a consortium comprising Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy Company Ltd, and Etihad Water and Electricity Company, has a levelized cost of electricity (LCOE) of 1.33803 U.S. cents per kWh.
This is a new world record for the lowest LCOE of wind power generation, Saudi Arabia says.
The 1.4-GW Najran Solar Energy Project in the Najran region will be developed in partnership with Abu Dhabi Future Energy Company (Masdar), with an LCOE of 1.09682 U.S cents per kWh.
This is the second-lowest in the world for the cost of electricity generation from solar energy, following the Shuaiba 1 Project, which is also located in the Kingdom.
Saudi Arabia expects its total tendered renewable energy generation capacity to reach 64 GW by the end of 2025.
By Charles Kennedy for Oilprice.com
Saudi Arabia has awarded one wind power and four solar power projects in the country worth a total estimated investment of $2.4 billion (9 billion Saudi riyals), the official Saudi Press Agency reports
oilprice.com
The largest solar energy projects in the world, the Shuaibah Station in Makkah Al-Mukarramah:
* More than 5 million solar panels.
* Production of 2600 megawatts.
* The location with the most radiation throughout the year.
* Project area of 55 square kilometers.
This is one of the fruits of our blessed vision
#رؤية_السعودية_2030 (Saudi Vision 2030) led by our inspiring prince
#محمد_بن_سلمان (MbS)
A little reminder why KSA could/should be a
world leader in renewables.
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