Saudi Aramco, the world's largest oil company by market value, has announced its decision to prioritize spending on the development of natural gas rather than oil reserves due to the higher returns it offers. The move comes as Saudi Arabia, the world’s second-largest oil producer after the United States, seeks to strengthen its domestic gas sector. This initiative is aimed at bolstering its petrochemical and fertilizer industries, as well as meeting the growing demand for electricity generation.

At the heart of Aramco’s natural gas strategy is the Jafurah field, located in the eastern part of the Arabian Peninsula. Jafurah is the largest non-associated gas field in Saudi Arabia, meaning its gas production is not a by-product of oil extraction. This distinction is important as oil production is constrained by OPEC quotas, which can restrict the output of associated gas fields. In contrast, Jafurah’s development is not subject to such limitations, allowing for a more flexible and expansive growth strategy.

Aramco has been working on the Jafurah field since 2021, and it is considered the Middle East’s largest liquid-rich shale gas project. The field contains approximately 229 trillion cubic feet of gas and 75 billion barrels of condensate—liquid gas. Initial production from the field is expected to begin this year at a rate of 200 million cubic feet per day (cfd).

In order to accelerate production, Aramco has already awarded 16 contracts worth about $12.4 billion for the second phase of Jafurah’s development. This phase aims to increase the field’s output by tenfold, reaching a production capacity of 2 billion cfd by 2030.

During the Al-Ahsa Investment Forum last month, Aramco CEO Amin Nasser revealed that total investment in Jafurah would exceed $100 billion over the next 15 years. The project is expected to contribute approximately $23 billion to Saudi Arabia's GDP. The reserves in Jafurah are significant, equivalent to around 25 percent of Qatar's North Field, the world's largest non-associated gas field.

In addition to Jafurah, Aramco has set ambitious targets to increase the country’s natural gas output by more than 60 percent by 2030 compared to 2021. To achieve this, the company is also developing other gas fields like Tanajib and Fadhili. Furthermore, Aramco has begun phase three of the Master Gas System (MGS), which will expand the country’s gas pipeline network by 4,000 kilometers and increase capacity by 3 billion cfd by 2028.

Beyond gas production, the Jafurah field is also forecast to generate 630,000 barrels per day of gas liquids and 418 million cfd of ethane. These by-products will be essential in supporting Saudi Arabia’s vital petrochemical industries, further enhancing the kingdom’s position as a global energy leader.