Why is this important? Increasing gas production can free up more crude for exports without increasing production. It enables Saudi Arabia to expand the petrochemical, power and water sectors while maintaining low CO2 emissions, and this will lead to higher economic growth. Finally, the large expansion of the gas sector could enable Saudi Arabia to export electricity and LNG in the future.
Energy giant Saudi Aramco has started producing the first unconventional tight gas at the South Ghawar field, a key step as the company seeks to increase gas production. “This first production of unconventional tight gas from South Ghawar is a milestone that demonstrates real progress on our gas expansion strategy,” Aramco’s Upstream President Nasir al-Naimi said in a statement.
South Ghawar and Aramco’s Gas Plans
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