The Jafurah project
helps strengthen Saudi Arabia’s energy security and position the country as a major player in the global gas market. It is expected to start production in Q3 2025. By 2028, it will add 3.15 billion cubic feet per day (Bcf/d) of capacity by 2028, 4,000 kilometers of pipelines, and 17 gas compression trains.
Oil and Gas Consumption
Local Consumption of Natural Gas
(Million BEO/year)
Natural gas development and expansion
One of the primary insights of our review of the energy sector in Saudi Arabia is the kingdom’s development plans for its production of natural gas. By planning to increase its natural gas production, Saudi Arabia may enhance the global supply and further establish its role in influencing electricity markets.
This could be particularly significant as importers, especially in Europe, seek alternative sources of natural gas to reduce dependency on more volatile regions as we have witnessed in Ukraine and Russia over the past three years of war.
Saudi Arabia’s Strategic Focus on Natural Gas
Saudi Arabia is focusing on significantly expanding its natural gas sector to meet growing domestic demand for electricity and support industrial development. Saudi Arabia's gas production is set to rise by
by 2030 i.e. from 13.5 billion cubic feet per day to approximately 21.3 billion cubic feet per day by 2030.
Natural gas production has been steadily increasing, reaching 120.4 billion cubic meters in 2022, up from 99.2 billion cubic meters in 2015.
Saudi Arabia's natural gas production is projected to rise by 4% in 2025, driven by the planned start-up of key projects such as Jafurah Phase 1 and Tanajib. These developments align with the Kingdom's Vision 2030 economic diversification plan, which seeks to increase electricity generation from natural gas and renewable energy sources.
Saudi Arabia holds the world's sixth-largest proved reserves. The country aims to double its gas production capacity by 2030, with significant investments in projects like the Jafurah unconventional gas field. This field contains 229 trillion cubic feet of natural gas reserves, including 15 trillion cubic feet of additional proved reserves announced in early 2024.
Saudi Arabia produced 4.3 trillion cubic feet of dry natural gas both in 2022 and 2023 i.e. flat production due to lower crude oil production and related natural gas production
Due to increased demand for natural gas-fired power generation, Saudi Aramco expected, as of 2021, that domestic demand for natural gas to increase 3.7% per annum until 2030.
The Kingdom has the world’s sixth-largest proved natural gas reserves after Russia, Iran, Qatar, the United States, and Turkmenistan.
Saudi Arabia has approximately 17% of the world's proved oil reserves and 22% of OPEC's proved reserves – as per OPEC data. Its oil reserves include the world's largest onshore and offshore fields - Ghawar and Safaniya, respectively.
Oil Production
(mln bd)
-
Oil Production fell to 8.96 million barrels per day in 2024, from 9.61 barrels per day in 2023 and 10.59 million barrels per day in 2022. Between 2015 and 2024 (10 year period), Saudi oil production was the lowest in 2024. This decrease reflects production cuts of OPEC+ from 2023.
An increase in Saudi Arabian natural gas production could lead to enhanced export capabilities, potentially stabilizing prices in global markets if European countries look towards new supply sources amid shifts away from traditional exporters, chiefly Russia, and given the fact that natural gas now plays a significant role in electricity price-setting in Europe.
Saudi Arabia is making significant strides in expanding its natural gas sector. The country plans to invest
to become the
the third-largest shale gas producer globally
leveraging the 229 trillion cubic feet of confirmed gas reserves in the Jafurah field.
Saudi Aramco has awarded contracts worth
for expansion, drilling, and capacity maintenance projects for its natural gas assets.
The company aims to increase gas sales by 60% to 2 billion cubic feet per day (Bcfd) by 2030.
Role in electricity generation and industrial feedstock
Natural gas plays a crucial role in Saudi Arabia's electricity generation and industrial sectors. As of 2023, the country produced nearly 58% of its electricity using fossil gas and 41% with oil.
Natural gas is also a major feedstock for the production of ammonia used in fertilizer production and for the production of blue hydrogen, which could play an important future role in providing lower-carbon energy.
The Jafurah project is expected to produce approximately 420 million standard cubic feet of ethane per day and around 630,000 barrels per day of NGL and condensate, offering significant potential to add value down the petrochemicals supply chain.