Saudi Arabia’s natural gas production increased by 30% in a decade to a record 11 billion cubic feet per day (Bcf/d) in 2020, according to the US Energy Information Administration (EIA), as the world’s top oil exporter aims to develop more stand-alone natural gas fields.
Saudi Arabia has seen a reduction in associated natural gas output from oilfields in recent years as a significant member of the OPEC+ deal, but the construction of non-related, stand-alone gas fields has enabled the Kingdom to boost its gas production to new highs, according to the EIA.
Saudi Aramco has begun to place a higher priority on the development of non-associated gas fields, the majority of which are offshore.
The leading oil producer in OPEC did not generate any non-associated gas in 2000, but stand-alone gas developments are expected to account for 46% of total gas production by 2020, according to the EIA.
Aramco, the Saudi Arabian oil company, plans to boost its oil production capacity to 13 million barrels per day (bpd) by 2027, up from 12 million bpd presently. It also wants to increase natural gas output to use more gas for domestic electricity generation instead of dirtier fuels like oil.
As of January 2021, Saudi Arabia’s proven natural gas reserves reached 333 trillion cubic feet (Tcf), including those in the Neutral Zone, which it shares with Kuwait. According to the EIA, Saudi Arabia was the world’s sixth-largest natural gas producer in 2020, behind Russia, Iran, Qatar, the United States, and Turkmenistan.
The Saudis are also exploring unconventional gas development, and Aramco announced the start of development of the Jafurah unconventional gas field at the end of 2021, awarding $10 billion in subsurface and Engineering, Procurement, and Construction (EPC) contracts.