Saudi Aramco will soon start the production of shale gas to supply industrial projects in the Kingdom, accoridng to oil minister Ali al-Naimi.
Speaking during the 18th annual meeting of the Saudi Economic Association, al-Naimi said that Saudi Aramco will initially provide shale gas to the Mining City of the North project and will supply a power generation plant, which is currently under construction.
Initial production will be from 20 MMcf/D to 200 MMcf/D, with about 20 MMcf/D due to be supplied to the Saudi Arabia Mining Company (Ma’aden) and to the power generation plant, accoridng to the minister.
Al-Naimi added that the Kingdom has made promising shale gas discoveries and has the technologies to produce it at a reasonable price.
Saudi Aramco’s unconventional gas programme became fully operational in 2013, just 2 years after launching its unconventional gas programme in the northern region.
The company said at the time that it was ready to commit shale gas for the development of a 1,000-MW power plant that will feed a phosphate mining and manufacturing sector.
Saudi Aramco is exploring unconventional gas in the North West of the Kingdom, in South Ghawar, and the Rub’a al-Khali known as the Empty Quarter.
The company has projected rapid growth for its unconventional gas value chain between now and 2020. This includes site development, rig preparation, drilling, fracturing, completion, well tie-in, production, and maintenance.
“The opportunity presently exists for unconventional gas sector manufacturers and service providers to serve Saudi Arabia and neighboring countries by targeting localization within Saudi Arabia as their operational hub,” Aramco said.
