Key milestones behind Aramco’s Jafurah gas plant launch

Saudi Arabia has marked a decisive step in its long-term energy transition: Aramco’s Jafurah gas plant has officially begun production.

Completing its first development phase and initiating output at 450 million cubic feet per day (MMcf/d), according to Reuters.

This is more than a new project coming online, Jafurah represents a structural shift in how the Kingdom will balance domestic demand, exports, and global market influence.

Below are the key points explaining why the start-up of Jafurah matters for the region and for the global gas market:

1. First phase completed: production begins at 450 MMcf/d

• The Saudi Ministry of Finance confirmed that Jafurah entered production as part of the Kingdom’s 2026 budget achievements.

• This early output confirms Aramco’s aggressive timeline for bringing unconventional gas into the market.

2. The largest shale gas development outside the United States

• Jafurah is considered the most significant shale gas play globally after the U.S. basins.

• Full development aims for 2 Bcf/d of sustainable production by 2030, positioning Saudi Arabia as a rising force in unconventional gas.

3. A core pillar of Aramco’s long-term natural gas strategy

• Aramco CEO Amin Nasser previously labeled Jafurah the company’s “crown jewel.”

• Estimated reserves: 229 trillion standard cubic feet — a scale that solidifies long-term reliability and export capability.

4. Strategic financial backing: $11 Billion raised

• Earlier this year, Aramco closed a lease-leaseback agreement with a BlackRock–GIP consortium, raising $11 billion to support gas processing infrastructure.

• The full Jafurah program is expected to exceed $100 billion in investment over its lifecycle.

5. Impact on Saudi Arabia’s energy mix and export strategy

• Jafurah’s gas will replace crude currently burned for domestic power generation—freeing millions of barrels for export.

• This shift enhances Saudi Arabia’s capacity to stabilize oil markets while advancing national decarbonization objectives.

6. A regional game-changer for the gas market

• The project strengthens Saudi Arabia’s role as a natural gas hub in the GCC.

• By 2030, Jafurah could influence LNG contract structures, regional gas pricing, and cross-border industrial development.

7. Energy security and economic diversification

• Jafurah aligns with Vision 2030 goals: expanding value chains, enabling downstream gas-based industries, and attracting foreign capital to non-crude sectors.

Key milestones behind Aramco’s Jafurah gas plant launch