Aramco aims for big jump in natural gas output

Aramco’s Fadhili Gas Plant. The company said it plans on expanding its gas production 60% by 2030 when compared to 2021. (Image: Aramco)

Aramco said it would increase its natural gas production 60% by 2030 when compared to 2021.

That was one of the key highlights of the company’s 2023 earnings report, which disclosed the company earned $121.3 billion—the company’s second highest ever net income.

“In 2023 we achieved our second-highest ever net income,” said Amin H. Nasser, Aramco President & CEO. “Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds. We also delivered for our shareholders with a 30% year-on-year increase in total dividends paid in 2023.

“Our capital expenditures increased in line with guidance as we seek to create and capture additional value from our operations, positioning the company for a future in which we believe oil and gas will be a key part of the global energy mix for many decades to come, alongside new energy solutions.”

The company’s gas projects are also advancing, with an aim to increase production by more than 60% by 2030, compared to 2021 levels. These projects include the Hawiyah Unayzah Gas Reservoir Storage, where injection activities have commenced with the goal of providing up to two billion standard cubic feet per day (bscfd) for reintroduction into the master gas system; completion of the Hawiyah Gas Plant expansion, increasing the plant’s raw gas processing capacity by 800 million standard cubic feet per day (mmscfd), including approximately 750 mmscfd of sales gas capacity; and production of the first unconventional tight gas from the South Ghawar operational area.

In 2023, the company announced its first international investment in LNG, following the signing of definitive agreements to acquire a strategic minority stake in MidOcean Energy. Completion of the transaction is subject to closing conditions, which include regulatory approvals.

“The recent directive from the government to maintain our Maximum Sustainable Capacity at 12 million barrels per day provides increased flexibility, as well as an opportunity to focus on increasing gas production and growing our liquids-to-chemicals business. At the same time, we continue to make progress on several strategic crude oil increments which will contribute to our reliability, operational flexibility and ability to seize market opportunities,” Nasser said.

“In parallel, announcements of our first international investment in LNG, the growth of our international retail operations, continued progress in major overseas refining and chemical projects, and our emerging new energies portfolio all serve to highlight our ability to capitalize on new market opportunities and advance our strategic objectives.”