Natural gas network expansion expected to cost SAR 38 bln: Minister

Minister of Energy Prince Abdulaziz bin Salman

Saudi Minister of Energy Prince Abdulaziz bin Salman said that the natural gas network will be expanded as part of the master gas system expansion (MSGE) project. A total of 23 new stations will be established, bringing up the total number of gas stations to 35, which in turn requires increasing gas pipelines length from 4,500 kilometers (km) to 8,700 km.

The capital expenditure of the planned natural gas network expansion is expected to reach SAR 38 billion, Saudi Press Agency reported.

The project will ramp up ethane production by 360 million cubic feet/day, a 40% rise in current output. Moreover, the production of natural gas liquids (NGLs) and condensates will exceed 600,000 barrels per day (bpd).

The project focuses on achieving a 75% content localization for all products and services, Prince Abdulaziz added, noting that the project is likely to provide 70,000-80,000 job opportunities, while direct and indirect jobs (throughout the project lifetime) are expected to stand at 200,000.

Meanwhile, the Saudi minister highlighted that the project will boost the Kingdom’s refining capacity, raising petrochemicals production by using crude oil and its derivatives, and NGLs, to 2.6 million bpd from 1 million bpd. The development project will also contribute towards replacing liquid fuel, contributing nearly 350,000 barrels of crude oil. It will also help realize the goals of the optimal energy mix to generate electricity.

Saudi Arabia's Ministry of Energy announced, on Nov. 29, the commercial feasibility of major unconventional resources in the Kingdom, as well as the launch of Saudi Aramco's program for the expansion of its gas business, Argaam reported.