BAKU, Azerbaijan, October 4. The share of unconventional gas in global production is poised to exceed 30 percent by 2030, says Rystad Energy, Trend reports.
This anticipated surge in unconventional production is primarily attributed to a decade-long decline in exploration success and the dearth of developed conventional gas projects, indicating a diminishing conventional gas supply.
The Gulf Cooperation Council (GCC) region, traditionally known as a formidable oil and gas production hub, has witnessed a marked decline in substantial conventional discoveries in recent years. Consequently, countries in the region are shifting their focus towards exploring and harnessing unconventional resources.
Saudi Arabia serves as a prominent example of this transformative shift, as the kingdom strives to phase out oil from its power generation portfolio and attain a balanced electricity generation mix of 50 percent renewables and 50 percent natural gas by 2030. This strategic transition towards a more diversified energy landscape is underpinned by a surging domestic demand for gas, projected to reach a substantial 125 billion cubic meters (Bcm) annually by the end of the decade.
To meet this burgeoning demand, Saudi Arabia will necessitate fresh production from non-associated gas fields, in addition to tapping into unconventional gas reserves such as the colossal Jafurah field, which stands as the most extensive liquids-rich shale gas play in the Middle East. Investment estimates for the Jafurah project exceed a staggering $100 billion. Saudi Aramco, the driving force behind the Jafurah endeavor, has outlined ambitious plans to achieve peak shale gas production of 2 billion cubic feet per day (Bcfd) by 2030.
Rystad Energy's estimates indicate that this ambitious production target is expected to be reached in the latter half of the 2030s. At that juncture, the project could contribute to nearly 15 percent of Saudi Arabia’s total gas production, providing a substantial boost to the nation’s overall gas supply.
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