Page 7 - DMEA Week 12 2022

DMEA COMMENTARY DMEA

down 1.7% to 934 mmcf (26 mcm) per day. Pro- maximum sustainable capacity (MSC) from Image source: Aramco
gress was made on projects at the Haradh and the current level of 12mn bpd to 13mn bpd by
Hawiyah gas fields under the Haradh gas incre- 2027, and noted that it would raise 2022 capex
ment and these are expected to add additional to a guidance of $40-50bn. Of this, acting chief
raw gas production capacity by the end of the financial officer Ziad Al Murshed said around
year. 30% ($12-15bn) would be spent on upstream
Meanwhile, a gas storage project at the Haw- oil, 27% ($10.8-13.5bn) on upstream gas and a
iyah Unayzah reservoir is nearing the final third ($13.2-16.5bn) on downstream activities.
engineering design phase, with the project seen Aramco said that raising production is “in
providing up to 2 bcf (57 mcm) per day of gas line with the company’s belief that substantial
for reintroduction to the Master Gas System by new investment is required to meet demand
2024. growth, against a broader decline in upstream
Capital expenditure rose by 18% to $31.9bn investment across the industry globally”.
as it continued to focus on the increasing its Meanwhile, it intends to increase gas produc-
upstream capabilities, highlighting its efforts tion by more than 50% by 2030 from the current
in developmental drilling, the start of work on 9.2 bcf to around 13.8 bcf (391 mcm) per day.
the unconventional Jafurah gas field and the Aramco anticipates that expanded gas pro-
construction of the Tanajib Gas Plant. The 2020 duction and utilisation will provide around
capital programme was reduced by at least $12bn 1mn bpd of extra liquids for export, while work
in June that year in response to the outbreak of remains ongoing on the second expansion phase
coronavirus (COVID-19) and the Brent price of the MGS, taking its throughput capacity from
going into freefall. 9.6 bcf (271 mcm) to 12.5 bcf (354 mcm) per day
One of the key highlights of the year was what and delivering around 5.2 bcf (147 mcm) per
Aramco described as “progress in its portfolio day of gas to central and western regions of the
optimisation programme” – an effort to emu- Kingdom.
late (and perhaps surpass) the success regional MGS Expansion II is seen reaching comple-
rival Abu Dhabi National Oil Co. (ADNOC) tion during the second half of the year.
has enjoyed by allowing international investors Downstream, having already signed off on
to lease stakes in key infrastructure assets while deals this year that will expand its global refining
retaining complete operational control and footprint – in Poland and China – Aramco said it
ownership. intends to de-risk its “upstream position through
Aramco agreed two major deals last year, alternative uses of oil”, noting a long-term goal
raising $27.9bn by leasing and leasing back 49% of achieving 4mn bpd of liquids-to-chemicals
stakes in first its oil pipeline subsidiary, then that capacity, without providing a timeline.
of gas, with the latter deal achieving financial The company continues to integrate the oper-
close last month. ations of Saudi Basic Industries Corp. (SABIC)
and envisages synergies of $3-4bn by 2025 as
Spending plans it garners greater value from increased control
Aramco reiterated its commitment to increasing down the value chain.™

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