DAMMAM - A huge quantity of gas will be supplied through a new network of pipelines to meet the growing needs of all central regions of the Kingdom, Minister of Energy Prince Abdulaziz Bin Salman has said. "All industrial cities and factories in Al-Qassim, Al-Kharj and Sudair will be provided with gas. Saudi Aramco will continue expanding its gas exploration programs to provide huge quantities of gas to cover the needs of all the cities across the Kingdom," he said in his speech at the ceremony of launching the commercial development of the Jafurah unconventional gas field. Prince Abdulaziz said the Kingdom will be the investor in the new gas network, and Aramco will be the one to manage and implement the project. The minister expected that the allocation for the project from the Kingdom's budget will not exceed SR5-6 billion, as most of the cost would come in the form of investments. "At least 17 entities are participating and working in this program, including Saudi Aramco, SABIC, SEC, ACWA Power and companies from the chemical sector," he added. Addressing the ceremony, Saudi Aramco President and Chief Executive Officer Amin Al-Nasser said that the great achievement in the unconventional gas field has come at an ideal time, as the world is witnessing a major transformation in the energy sector. He said Saudi Arabia will become the third largest global producer of natural gas by the end of this decade. Al-Nasser lauded Minister of Energy's speech, especially the minister's remarks that the Saudi energy policy is based on three key components: energy security, economic growth, and climate change. "Several policy makers in many countries of the world have failed to achieve a balance between these three components." he pointed out. "The Kingdom is topped and distinguished itself over the countries of the world, as gas today meets all these components, as it is considered as a reliable source of energy, and is available at reasonable prices," he said. Al-Nasser said that gas is an essential source that the whole world should resort to in order to address the challenges of renewable energy sources interruptions, as natural gas produces half of the carbon emissions compared to coal when used to generate electricity. The huge Jafurah field basin extends over an area of 17,000 square kilometers, with an estimated volume of gas resources at about 200 trillion cubic feet, Nasser said while expecting that the field will produce nearly two billion standard cubic feet per day of gas meant for sale by 2030. "The company has been able to reduce drilling costs by 70 percent, and we expect that burning nearly half a million barrels of oil per day will be dispensed with in the future when we add the Jafurah field production to the total production. This will contribute to reducing carbon dioxide emissions in electricity generation in the Kingdom," he pointed out. The Jafurah field will constitute a major turning point when setting the Kingdom's goal of having 50 percent of its electricity from renewable energy sources and 50 percent from gas. One of the unconventional resource programs is to advance the local economy, as it seeks to localize more than 70 percent of the exploration and production sector and the petrochemical value chain by 2025, the Aramco chief added.
