Sources say Saudi Aramco will export the first condensate in February from Jafurah Gas Plant
Two sources familiar with the matter confirmed on Tuesday that Saudi Aramco, the state energy company, plans to export the first condensate from the Jafurah Gas Plant in 'February.
Aramco is aiming to be a global leader in natural gas by increasing its production capacity. The $100 billion Jafurah Project, which contains 229 trillion standard cubic feet of raw gas, and 75 billion barrels condensate according to estimates, is at the heart of this ambition.
Saudi Finance Ministry said that the first phase of production began in early this month.
One of the sources, who declined to give a time frame, said that Aramco would be able to export between four and six cargoes of 500,000 barrels per month. One source claimed that the condensate was being sold via private negotiations.
A third source said Aramco could provide samples to customers by the end the month. Aramco did not respond to a comment request.
GRADE 'COULD COMPETE WITH HEAVIER CRUDES, ULTRA LIGHT CONDENSATES'
Condensate, a non-gas fluid, can be processed in splitters to produce petrochemical feedstock (naphtha) and?other refined product or blended with crude oil for distillation at refineries.
According to an initial crude assay, the condensate had an API gravity (degrees) of 49.7 and contained about 0.17% sulfur.
The assay shows that about 40% of the yield is naphtha petrochemical feedstock, mostly the heavier grade. Most of the remaining output is gasoil or kerosene.
Armaan Ashraf is global head of NGLs for consultancy FGE. He said that the uncertainty was how much oil would be available on the market within the next six to twelve months. This grade appears to compete with heavy condensates as well as ultra-light crudes.
JAFURAH GAS?OUTPUT IS TO BE USED IN THE DOMESTIC MARKET
Jafurah’s gas production will be used to generate domestic electricity, releasing crude oil for export which is currently used to?power the kingdom.
Aramco said that its unconventional gas program at peak production?is expected generate electricity equal to displace 500,000 barrels of oil per day.
Ashraf stated that Jafurah was positioned as a?gas?project and should not be included in Saudi Arabia's OPEC production quota.
Saudi Aramco increased exports of Khuff Condensate in the eastern Saudi Arabia province to 49,000 Bpd this year, up from 18,000 Bpd in 2024. This is according to data from analytics company Kpler. (Reporting and editing by Andrew Heavens, Jan Harvey and Florence Tan)
(source: Reuters)
