Aramco’s Gas Strategy Builds Momentum with Major Progress Towards Growth Target

This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)
This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)
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Aramco’s Gas Strategy Builds Momentum with Major Progress Towards Growth Target

This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)
This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)

Aramco announced Thursday major progress in its ambitious gas expansion strategy, with the start of production at Jafurah, the Middle East’s largest unconventional gas field, and the commencement of operations at Tanajib Gas Plant, one of the largest gas plants in the world.

This will contribute to Aramco’s plan to increase sales gas production capacity by approximately 80% by 2030, over 2021 production levels, reaching approximately 6 million barrels of oil equivalent per day of total gas and associated liquids production. This is expected to generate incremental operating cash flows of $12 billion to $15 billion in 2030, subject to future sales gas demand and liquids prices, SPA reported.

Aramco President and CEO Amin H. Nasser said: “Jafurah and Tanajib significantly strengthen Aramco’s gas portfolio and expand our capacity at scale. These projects are a major step forward for our company and for the Kingdom’s energy future.

Gas is central to our long-term growth strategy. It is expected to generate substantial earnings, meet rising domestic demand, support development across key sectors, and deliver significant volumes of high-value liquids. Together, these investments make Aramco stronger, more diversified, and better positioned to deliver sustained value to our shareholders. We value the continued leadership and support of the Ministry of Energy in advancing these strategic projects.”

Gas from Jafurah is expected to support the Kingdom’s broader growth ambitions across key sectors such as energy, artificial intelligence, and major industries, including petrochemicals, potentially providing a significant boost to the economy and solidifying Saudi Arabia’s position as one of the world’s top 10 gas producers.

Aramco began producing the first unconventional shale gas at Jafurah in December 2025, with technology playing a key role in unlocking Jafurah’s potential and establishing it as a global benchmark for unconventional gas development. Since its inception, the project has leveraged technology to reduce drilling and stimulation costs and boost well productivity, contributing to its strong economic outlook.

Covering an area of 17,000 square kilometers, Jafurah is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. By 2030, it aims to deliver 2 billion standard cubic feet of sales gas per day, 420 million standard cubic feet of ethane per day, and approximately 630,000 barrels of high-value liquids per day.

Tanajib Gas Plant is a key component of Aramco’s strategy to increase gas processing capabilities and diversify its energy product portfolio, thereby supporting long-term economic growth. Operations commenced in December 2025, and it is expected to reach a raw gas processing capacity of 2.6 billion standard cubic feet per day in 2026.

The commencement of operations at Tanajib coincided with the start of production at Aramco’s Marjan crude oil increment. The plant, which features digital integration, enhanced operational efficiency, complex project delivery, and maximum resource utilization, processes associated raw gas from crude oil production at the offshore Marjan and Zuluf oil fields.

Aramco’s gas expansion is expected to create thousands of direct and indirect job opportunities, potentially generating substantial added value and reinforcing Aramco’s position as a reliable energy supplier.

In addition to helping meet rising demand for natural gas and enhancing supplies to national industries, Aramco’s gas growth strategy supports efforts to achieve a more optimal energy mix for domestic electricity production. It also advances the Kingdom’s liquid fuel displacement program, complements the Kingdom’s 2060 net-zero ambition, reinforces energy security, and contributes to the development of a diverse national economy.



Saudi Aramco: Oil Refining Has Been Underinvested

FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Saudi Aramco: Oil Refining Has Been Underinvested

FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The current oil supply crisis shows there is underinvestment in oil refining as demand holds resilient, Saudi state-owned Aramco's vice president of market analysis and sustainability, Musaab Al Mulla, said on Tuesday.

Around 3 ⁠million barrels per ⁠day of refining capacity closed between 2020 and 2023, Al Mulla said at the S&P Global Energy Middle East ⁠Petroleum and Gas Conference in London.

"Now we realize if you have those refineries you may have definitely mitigated the impacts of the crisis today," he said.

The war in Iran, attacks on energy infrastructure and ⁠Iran's effective ⁠closure of the Strait of Hormuz followed by a US naval blockade, have removed around 14 million bpd of oil supply from Middle East producers to the global market.


OECD Cuts 2026 Global Growth Forecasts Over Mideast War Fallout

A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
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OECD Cuts 2026 Global Growth Forecasts Over Mideast War Fallout

A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)

The war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned Wednesday.

Global economic growth is now forecast to slip to 2.8 percent for 2026 if Gulf exports of oil and gas return to pre-conflict levels in the third quarter, the group of 38 industrialized countries said in its quarterly update.

Previously the OECD had forecast full-year global growth of 2.9 percent.

But if the Middle East war continues into next year, however, global growth could slow to 2.1 percent, the OECD said -- well below the average annual growth of 3.4 percent seen from 2013 to 2019, before the Covid pandemic.

"The longer the disruptions last, the larger the economic and social costs become," the group's chief economist Stefano Scarpetta said in the report.

Many countries would risk falling into recession, he noted, and a drop in investment spending -- "including in energy-intensive AI" -- would likely push up unemployment.

Sustained high prices for energy as well as fertilizer and other key products from hydrocarbon production in the Gulf would weigh especially hard on developing countries that have "higher shares of energy and food in household consumption".

Even if the war sparked by US and Israeli strikes on Iran in late February ends in the coming weeks, the OECD forecast global inflation rising to 4.0 percent this year from 3.4 percent in 2025.

In this "time-limited disruption scenario", the group expects US growth to slow to 2.0 percent this year and 1.8 percent in 2027, after growing 2.1 percent last year.

In the eurozone, where many countries are highly dependent on energy imports, GDP growth will slump to 0.8 percent this year after 1.4 percent last year, assuming a Mideast ceasefire is secured in the coming weeks.


Saudi Non-oil Private Sector Activity Hits 3-month High in May

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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Saudi Non-oil Private Sector Activity Hits 3-month High in May

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

Saudi Arabia's non-oil private sector expanded at the fastest pace in three months in May as domestic demand improved and supply chains stabilized, while business optimism remained subdued amid conflict in the region, a survey showed on Wednesday.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index, compiled by S&P Global, rose to 52.8 in May from 51.5 in April. The 50 mark separates growth from contraction, Reuters reported.

Output accelerated at the ⁠fastest pace in ⁠three months after March's downturn following the start of the Iran war, as firms cited normalizing working conditions, revived contracts and stronger local demand.

Export sales fell for a third straight month, hit by shipping disruption, higher freight and fuel costs, geopolitical tensions and stronger competition. The pace of decline eased only modestly from April's survey-record contraction.

However, supply chains improved, with suppliers' delivery times shortening for the first time in three months as ⁠firms relied ⁠more on local vendors. Backlogs of work rose for an 11th consecutive month, albeit moderately.

“Overall, the latest PMI reading supports the expectation that Saudi Arabia’s non-oil economy will continue its upward trend during the remainder of 2026," said Naif Al-Ghaith, Riyad Bank's chief economist.