Saudi Aramco Secures First Condensate Deals for Jafurah Shale Gas Project, First Shipment to Depart by End of This Month

According to Reuters, unnamed trade sources revealed that Saudi Aramco has secured deals for several batches of condensate produced from its $100 billion Jafurah shale gas facility, with the first shipment expected to depart formally by the end of this month. 

This marks the entry of Saudi Arabia’s core energy diversification project into a new phase of commercial export.

Sources further disclosed that the partners with whom Saudi Aramco has reached deals this time are all internationally renowned enterprises, including several major U.S. energy giants and an Indian refiner. 

Among them, the U.S. buyers include two leading energy companies, Chevron Corporation and Exxon Mobil Corporation, while the Indian partner is Indian Oil Corporation. This cooperation pattern demonstrates the international market recognition of the products produced by the Jafurah project.

As the core carrier for Saudi Arabia to diversify into the natural gas sector and become a major global natural gas exporter, the Jafurah gas field boasts world-class resource reserves. 

Its natural gas reserves are estimated at approximately 230 trillion cubic feet, and its condensate reserves reach 75 billion barrels, making it widely regarded in the industry as the largest shale gas project outside the United States. 

According to the plan, the project is expected to achieve a daily natural gas output of 2 billion cubic feet by 2030, along with a daily output of 420 million standard cubic feet of ethane and 630,000 barrels of high-value liquids. 

By then, it will significantly enhance Saudi Arabia’s voice in the global natural gas market.

It is reported that condensate production at the Jafurah natural gas processing plant started earlier this month, several months later than the start of natural gas production, with an initial daily output of 450 million cubic feet. 

Currently, the first batch of goods from the plant has been successfully delivered to Asian buyers, and Saudi Aramco plans to export 4 to 6 batches of condensate to the Asian market every month in the future, with each batch totaling 500,000 barrels, to continuously expand its share in the Asian market.

Amin Nasser, President and Chief Executive Officer of Saudi Aramco, stated last year after completing the $11 billion Jafurah midstream project transaction that the launch of the Jafurah project will advance the company’s plan to expand overall natural gas sales and output, helping Saudi Arabia achieve its growth goals in several key areas, including energy, artificial intelligence, and major industries such as petrochemicals. 

It is reported that this $11 billion transaction was completed by a consortium led by Global Infrastructure Partners, a subsidiary of Blackstone Group, through a lease and leaseback investment model, injecting sufficient financial support for the project’s progress.

The steady advancement of the Jafurah project is not only an important measure for Saudi Arabia to transform its energy structure from "oil dependence" to "simultaneous development of oil and gas" but also will further enrich the global supply pattern of natural gas and condensate, injecting new impetus into the stable development of the international energy market. 

With the departure of the first shipment, the commercial value of the project will be gradually released, providing strong support for Saudi Arabia’s economic diversification.