Saudi Aramco's Natural Gas Exports: Insights and Trends
Saudi Aramco, the world's largest oil and gas company, plays a significant role not only in the global oil market but also in the natural gas sector. This article explores whether Aramco exports natural gas to other countries and companies, providing an overview of the current situation and historical trends.
Export Terminal at the West Coast of Saudi Arabia
Located on the west coast of Saudi Arabia, where I have previously worked as a Maintenance Coordinator for Saudi Aramco at the Refinery, there is a mammoth liquefied petroleum gas (LPG) export terminal. This terminal ensures a continuous 24/7, 365-day-a-year export of LPG to countries around the world via gas tankers. This facility highlights Saudi Aramco's commitment to exporting natural gas to meet global demands.
Historical Overview of Natural Gas Utilization
During the 1980s, I had the opportunity to work on various “gas gathering” projects for Saudi Aramco. Prior to this period, a significant amount of “associated natural gas” produced alongside crude oil was being flared for disposal. With advancements in technology and an increase in demand for energy, Saudi Arabia has significantly improved the utilization of both associated and non-associated gas since then.
Currently, most of the natural gas produced within Saudi Arabia is used domestically. Aramco has made a strategic shift, utilizing the majority of its production to generate electricity, with over 60% coming from gas desalters and other industrial applications within the country. This internal consumption is a testament to how demand for natural gas has grown locally.
International LNG Exports and Future Prospects
Despite internal production, there are aspects of natural gas export that Aramco is involved in. For instance, Aramco has entered into a contract to buy and export liquefied natural gas (LNG) from Sempra’s Texas plant. Currently, it appears that Aramco is late to the LNG market in comparison to other major players. However, the field adjacent to Qatar, which is believed to stretch into Saudi territory, could provide Aramco with an opportunity to drill into its own soil and potentially increase its LNG export capacity.
It is noteworthy that at present, Saudi Aramco is arguably the largest exporter of natural gas in the world, with only a small portion (about 1%) being used internally for domestic consumption. The remaining 99% is dedicated to export sales, showing the company's significant role in the international natural gas market.
My experience working at Saudi Aramco for four years has provided me with a unique perspective on the company's operations and its impact on the global energy landscape.