Middle East countries are shifting their focus to gas in line with their energy transition strategies, to meet burgeoning local and global demand for the lower-carbon transition fuel. gas Image Credit: Adobe Stock Gas can play a pivotal role in the energy transition. A ramco is pursuing aggressive gas expansion plans to displace oil from its power production mix with a mixture of gas and renewables, as well as provide feedstock for industrial and petrochemicals development, with local demand for gas forecast to reach 125 Bcm annually by the end of the decade, according to Rystad Energy. Its strategy is to raise gas production by more than 60% by 2030, compared to 2021 levels, and grow an integrated global gas business. Work is progressing at the giant Jafurah unconventional gas field, the largest liquid-rich shale gas play in the Middle East, containing an estimated 229 trillion scf of natural gas, along with an estimated 75bn STB of condensate. Initial production is expected to commence in 2025. Aramco recently awarded contracts worth around US$12.4bn for the construction of 14 Ramping up the gas ISSUE 5 2024 | oilreviewmiddleeast.com gas compression facilities and associated pipelines, expansion of the Jafurah gas plant and construction of the new Riyas NGL facilities in Jubail. Aramco has also awarded contracts worth around US$8.8bn for the expansion of the Master Gas System, which will raise its total capacity by an additional 3.15 bscfd by 2028. Other recent contracts include EPC contracts worth US$7.7bn to SAMSUNG Engineering Company, GS Engineering & Construction Corporation and Nesma & Partners for a major expansion of the Fadhili gas plant in Eastern province. Aramco is also moving into the global LNG market with the acquisition of a minority stake in MidOcean Energy, and the signing of an LNG offtake agreement for the Port Arthur LNG Phase 2 expansion project. This is “a major step in Aramco’s strategy to become a leading global LNG player,” said Nasir K. Al-Naimi, Aramco Upstream president. In the UAE, ADNOC Gas is expanding the UAE’s gas pipeline network with the recent award of US$550mn worth of EPC contracts for the next phase of the ESTIDAMA project, the UAE sales gas pipeline network expansion. ADNOC’s Ruwais LNG project is making headway and is set to capitalise on increasing global LNG demand, forecast to rise by more than 50% by 2040, according to Shell’s LNG Outlook 2024. When complete, it will more than double ADNOC’s LNG production capacity to around 15mmtpa, as the company builds its international LNG portfolio. ADNOC has awarded an EPC contract worth around US$5.5bn to a Technip-led joint venture and is set to commence construction shortly, with LNG deliveries expected to start in 2028. ADNOC has already signed several new long-term LNG sales commitments with international partners. bp, Mitsui & Co, Shell and TotalEnergies have recently committed to take a 10% equity stake each in the project, which supports ADNOC’s efforts to build an integrated global gas business. n gas Image Credit: Aramco ADNOC’s Ruwais LNG project is making headway. Aramco is expanding its Fadhili gas plant. ISSUE 5 2024 | oilreviewmiddleeast.com