#Saudi Arabia's oil production isn't solely reliant on #crude. The kingdom has already established 3 mmb/d of gas liquids production facilities, a capacity set to increase to 4.4 mmb/d by the early 2030s. This growth is being driven by a range of #upstream and #downstream gas projects, with the majority focused on #nonassociated gas sources. Notably, only 27% of the 1.4 mmb/d addition will be contingent on crude production, reducing the impact of #OPEC/#OPEC+ decisions on the Kingdom non-crude liquid (#NGLs + #condensate) production. This marks a significant shift from the 55% dependency observed in 2023. For a deeper understanding, go through the alert.
In the past two decades, #SaudiArabia's gas sector has undergone remarkable growth, and this upward trend is expected to continue in the coming years. Over the next decade, the kingdom is on track to experience a substantial increase in gas processing capacity, with a projected addition of more than 7.5 bscf/d. This expansion is primarily propelled by the construction of new gas plants, including #Hawiyah, #Khursaniyah, #Tanajib, and #Jafurah. These developments strongly support a significant boost in Saudi oil exports in the years ahead as: - The increased gas processing capacity will yield a significant rise in the production of gas liquids (NGLs and condensates), as byproducts, to the tune of some 1 mmb/d, and - Transitioning to gas-based energy sources will enable Saudi Arabia to release a substantial volume of liquids into the domestic market, specifically the #power sector. To delve deeper into the dynamics of #NGLs and #condensate supply in Saudi Arabia in the years ahead, explore our latest Middle East Alert (accessible* at: https://bit.ly/47ctWPj). * NOTE: Only #FGE clients who subscribe to the #MiddleEastOil service can access the full report on the client portal.
