Saudi Minister of Energy Prince Abdulaziz bin Salman has said the new global economy is transforming how the world works and lives, and it runs on a lot of energy, stressing that the Kingdom provides the world’s most efficient, competitive, and reliable energy ecosystem.
Prince Abdulaziz spoke at a special session titled “Enhancing Economic Competitiveness in the Energy Sector” at the 9th Future Investment Initiative (FII9) in Riyadh on Tuesday.
The minister revealed plans to enter the global battery sector in full force next year and stressed that energy sustainability is the foundation of the new economy, underpinning industrial and service sector growth.
“We must prepare today for the needs of 2030 and beyond,” he said.
The minister pointed out that Saudi Arabia is working across all energy sources without exception to meet global demand, while maintaining its competitive edge as a reliable energy supplier to the world.
He also disclosed that 40 percent of the Kingdom’s power grid has already been automated, a figure expected to rise significantly in the coming phase. The current goal, he added, focuses on advancing energy storage capacity to reach 28 percent.
Also speaking at a session at the FII9, Aramco President and CEO Amin Nasser unveiled a bold investment plan to strengthen the company’s digital arm, announcing an injection of $2 billion into Aramco Digital over the next two to three years.
He said Aramco is also expanding its gas business by 60% over the next five years, alongside its continued growth in renewable energy and oil-to-chemicals initiatives.
“We continue our exploration program despite our massive reserves because we are identifying new opportunities, especially in gas,” Nasser added.
He explained that deploying artificial intelligence and digital solutions in drilling and operations has doubled productivity in some cases.
Nasser spoke as Aramco signed an $11 billion lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors, led by funds managed by Global Infrastructure Partners (GIP), a part of BlackRock.
Jafurah is the largest non-associated gas development in the Kingdom, estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels. It is a key component in Aramco’s plans to increase gas production capacity by 60% between 2021 and 2030, to meet rising demand.
As part of the transaction, a newly-formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for a period of 20 years. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from Jafurah.
Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP. The transaction, which will not impose any restrictions on Aramco’s production volumes, is expected to close as soon as practicable, subject to customary closing conditions.
