Saudi Aramco will develop Jafurah, the biggest unconventional and non-associated gas region in Saudi Arabia that contains approximately 200 trillion cubic feet of natural gas.
The oil conglomerate will invest $110 billion to develop the Jafurah gas field - located in the eastern province and is 170 kilometers long and 100 km. wide - the Saudi Press Agency reported, citing information from the Saudi Arabian Crown Prince, Mohammed bin Salman.
The oil-rich country's budget for the current year has been approved with an estimated deficit of $49.87 billion, as the country aims to pour more money into its vast economic diversification ventures. Aramco expects 550,000 barrels per day of gas liquids and condensates to be generated by Jafurah.
The crown prince said that within 22 years, the project would earn the Kingdom a total income of around $8.6 billion annually, providing gross domestic output with $20 billion every year, while creating more jobs for the people.
Bin Salman stressed that they are determined - "with Allah's help" - to continue to impose economic reforms and diversify sources of income, which includes investing proceeds of Saudi Aramco by the Public Investment Fund.
Saudi Aramco said the Kingdom expects that Jafurah's development would have a positive economic impact in the long- term, which will begin to show on the firm's financial results concurrent to the project's implementation," the company said.
The crown prince pointed out that gas allocation will be prioritized to the domestic market, water desalination, mining, electricity, among many sectors in the region, which the prince said would help sustain the Saudi Vision 2030.
The government noted that the operational cost allotted for the current year would also go towards enhancing basic services for the people, improve public services, boost social protection programs, support housing projects, and lift the quality of life in Saudi Arabia.
The Crown Prince said that the Kingdom's deficit in 2019 is estimated to reach around 4.7 percent of its gross domestic product, compared with almost 6 percent in 2018 and 9.4 percent in 2017. He added that the economic and financial reforms that have been carried out since 2016 have already started to show strong results.
Other Gulf nations have also invested heavily in their oil and gas projects, especially on new discoveries as they fast-track exploration for natural gas. Abu Dhabi National Oil Co., UAE's largest oil company, announced in January the discovery of a gas field containing 80 trillion standard cubic feet of gas on the Dubai-Abu Dhabi border and will develop it with Dubai's gas company, the Dubai Supply Authority.
