Aramco Produces First Unconventional Tight Gas at South Ghawar

Saudi Aramco has successfully produced the first unconventional tight gas from its South Ghawar operational area two months ahead of schedule.
Saudi Aramco has successfully produced the first unconventional tight gas from its South Ghawar operational area two months ahead of schedule.
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Aramco Produces First Unconventional Tight Gas at South Ghawar

Saudi Aramco has successfully produced the first unconventional tight gas from its South Ghawar operational area two months ahead of schedule.
Saudi Aramco has successfully produced the first unconventional tight gas from its South Ghawar operational area two months ahead of schedule.

Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, has successfully produced the first unconventional tight gas from its South Ghawar operational area two months ahead of schedule.

The development supports Aramco’s strategy to increase gas production by more than half, over 2021 levels, through 2030, subject to domestic demand.

Commissioned facilities at South Ghawar have a 300 million standard cubic feet per day (scfd) of raw gas processing capacity and 38,000 barrels per day (bpd) of condensate processing capacity.

In response to growing demand for gas, the company will continue its work to more than double the overall processing capacity in order to achieve South Ghawar’s strategic goal of delivering 750 million scfd of raw gas in the near future.

Nasir Al-Naimi, Aramco Upstream President, said: “This first production of unconventional tight gas from South Ghawar is a milestone that demonstrates real progress on our gas expansion strategy, which we believe has a role to play in meeting the Kingdom’s needs for lower-emission energy and supporting growth in the chemicals sector.”

“The ability to commence production two months ahead of schedule and below budget is testament to the unwavering dedication of our people and their determination to continuously enhance our Upstream operations,” he added.

Successful production of tight sand gas at South Ghawar represents Aramco’s second unconventional gas stream, after production commenced at the North Arabia field in 2018 with the delivery of 240 million scfd to customers in Wa’ad Al-Shamal. Work is simultaneously progressing at the giant Jafurah unconventional gas field, which is the largest liquid-rich shale gas play in the Middle East.



Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
TT
20

Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo

Gold prices gained over 1% on Monday as the dollar and US bond yields weakened amid uncertainty over trade talks ahead of a US deadline of August 1 for countries to strike deals or face more tariffs.

Spot gold was up 1.2% at $3,390.79 per ounce at 9:52 ET (1352 GMT). US gold futures were up 1.3% to $3,402.40.

The US dollar index was down 0.4%, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low, Reuters reported.

"With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures.

The European Union is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

On the interest rate front, traders are pricing about a 63% chance of a rate cut in September, according to the CME FedWatch Tool.

U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution and whether it had been successful.

Talk of earlier than expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said.

Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment.

Data showed that the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month.

Spot silver gained 1.8% to $38.86 per ounce, platinum rose 2.2% to $1,453.17 and palladium was 3.5% higher at $1,284.46.