RIYADH, Oct 26: Saudi Arabia’s gas production is expected to double to 10 billion cubic feet per day by the year 2010.
While discussing the “Role of Gas in the Development of Saudi Arabia,” a Saudi Aramco official explained that with three expanded gas-processing plants now in operation, the Master Gas System of the Saudi Aramco today handles over 5 billion cubic feet of capacity per day. He said by the year 2010, “our gas production will easily double to more than 10 billion cubic feet per day.” He stressed gas is fast becoming the driving force behind the Kingdom’s newest phase of industrial development. He stressed that the development of gas industry in the Kingdom began with Saudi Aramco building elements of what became one of the largest gas systems of its kind in the world, the Master Gas System.
Saudi government has recently undertaken a massive initiative to attract foreign companies into the upstream and downstream gas projects in the Kingdom. The response of the global oil majors have been tremendous and as per the initial estimates some $25 billion of direct foreign investments could flow into the Kingdom, as a result of this initiative. Selection of oil majors interested in various projects have already been completed and the process is now moving ahead, to finalize things by mid-December.
Saudi Aramco currently manages all upstream and downstream energy projects in the Kingdom. Its current total gas reserves stand at about 220 trillion standard cubic feet, of which about 135 trillion is associated gas and 85 trillion is in the non-associated form. It ranks among the world’s top four companies in gas reserves. Gas, it is widely believed, would be the engine of future industrial growth of the Kingdom. Hence one of the major objectives of the policy makers of the company has been to expand the non-associated gas reserves and the related gas processing and distribution network, so as to help satisfy the growing domestic demand for gas as fuel and industrial feedstock.
The giant Hawiyah Gas Plant project is on track and is scheduled for completion within this year. Already trial production on this project has already begun. This is the fourth plant in the Kingdom’s Master Gas System. When fully operational this plant will increase the supply of sales gas to the MGS by about 1.4 billion standard cubic feet per day. It will also produce 170,000 barrels of condensate and 1,000 tons of sulphur per day.
Similarly work on the Haradh Gas plant in the eastern province is also moving ahead. This project is scheduled to be completed by late 2003, Once, operational it would be able to process an additional 1.6 billion standard cubic feet per day of non-associated gas.
