Saudi Aramco has begun production of light oil (condensate) from its $100 billion Jafurah unconventional gas project, after the company completed Phase 1 construction of the 450-MMcf/D-capacity gas plant. This marks the first export of liquids from the massive field, which is primarily designed to produce natural gas.
Initial cargoes were sold to Asian buyers for delivery in late February or early March 2026. Aramco will initially sell 4 to 6 cargoes per month, with each cargo consisting of approximately 500,000 barrels. Condensate is a high-value, light oil produced alongside natural gas. Aramco is expected to ramp up production at Jafurah to 2 billion cubic feet per day of natural gas by 2030.
The Jafurah unconventional gas project is the largest liquid-rich shale gas play in the Middle East, holding 229 trillion scf of raw gas and 75 billion STB of condensate. The project is a key element of Saudi Arabia’s growth strategy, aimed at meeting rapidly growing domestic energy demand, shifting away from burning oil for electricity and driving industrial growth. By reducing domestic crude consumption for power, the Kingdom intends to free up this oil for export.
The project also supports Saudi Arabia’s net-zero 2060 targets by replacing more carbon-intensive fuels with natural gas. The giant project involves advanced hydraulic fracturing and horizontal drilling, with a total investment value estimated to reach over $100 billion. In August 2025, a consortium led by BlackRock’s Global Infrastructure Partners (GIP) signed a 20-year, $11 billion lease-and-lease-back deal with Aramco for the Jafurah gas field. Jafurah Midstream Gas Company (JMGC), newly established subsidiary, will hold the rights, with 51% owned by Aramco and 49% by the GIP-led consortium, which includes Hassana Investment Company and The Arab Energy Fund.
The deal also aligns with Aramco’s objective to increase overall gas production capacity by 60% by 2030.
The Jafurah project also supports the country’s Vision 2030’s goal to shift away from oil dependency. The project is expected to contribute $20 billion annually to the Kingdom’s GDP and create significant local job opportunities.
By Alex Kimani for Oilprice.com
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