(World Oil) – Aramco has begun gas production from the first phase of its Jafurah development, marking a major step in Saudi Arabia’s push to scale unconventional resources and expand domestic gas supply. According to Reuters, the milestone was disclosed in the Saudi Ministry of Finance’s 2026 budget statement, which listed the start-up as a key 2025 achievement.
Jafurah is considered the world’s largest shale gas project outside the United States, with estimated resources of 229 Tcf of raw gas. Phase-one facilities are now producing 450 MMcfd, with output expected to ramp to roughly 2 Bcfd by 2030 as additional phases come online.
Gas from Jafurah will primarily support Saudi Arabia’s power generation needs, replacing crude that is currently burned for electricity and freeing additional barrels for export. Aramco has previously said that, at peak unconventional gas production, the program could displace the equivalent of 500,000 bopd in domestic fuel use, Reuters reported;
The $100-billion development is central to Aramco’s long-term strategy to elevate gas production capacity and expand its role in global LNG and pipeline gas markets. Aramco’s total gas output rose to 12.6 Bcfd at the end of September, up from 12 Bcfd during the same period last year, and the company recently increased its gas growth target to 80% above 2021 levels.
CEO Amin Nasser has described Jafurah as a “crown jewel” of the company’s portfolio, noting during an earnings call last month that phase-one work remained on schedule for completion by year-end. Earlier this year, Aramco raised $11 billion in a lease-and-leaseback agreement for Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners, part of BlackRock.
Aramco declined to comment further on the announcement.
