Saudi Aramco has launched a large-scale shale gas development project in the Rub' al Khali basin, targeting 2 billion cubic feet per day of output by 2030. The move marks a strategic shift toward diversifying the kingdom's energy portfolio.
- Aramco plans to produce 2 billion cubic feet of shale gas per day by 2030
- Investment of $4.2 billion over five years for drilling and infrastructure
- Over 200 horizontal wells to be drilled in the Rub' al Khali basin
- Estimated recoverable reserves of 15 trillion cubic feet
- Targeting 35% cost reduction compared to global shale benchmarks
- Projected creation of 8,000 jobs during project lifecycle
Saudi Aramco is advancing a transformative shale gas initiative in the Rub' al Khali desert, the world's largest contiguous sand desert, with plans to unlock hydrocarbon reserves estimated at 15 trillion cubic feet. The company has allocated $4.2 billion in capital spending over the next five years to drill more than 200 horizontal wells and build associated infrastructure, including a 200-kilometer pipeline network. Initial production is expected to begin in 2027, with the goal of reaching 2 billion cubic feet per day of shale gas by 2030—enough to supply electricity to over 10 million homes annually. This project represents a pivotal step in Saudi Arabia's broader energy diversification strategy, reducing reliance on crude oil for domestic power generation. By utilizing advanced hydraulic fracturing and horizontal drilling techniques, Aramco aims to achieve a 35% reduction in production costs compared to international shale benchmarks. The initiative is also expected to create over 8,000 direct and indirect jobs during the construction and operational phases, primarily in the Eastern Province and the Neom region. The development could significantly alter regional energy dynamics, as Saudi Arabia transitions from being a net importer of natural gas to a potential exporter in the medium term. With domestic gas demand projected to rise by 6% annually through 2030, the project aligns with the kingdom’s Vision 2030 goals of enhancing energy security and supporting industrial growth. Aramco has partnered with international engineering firms to provide technical expertise in reservoir simulation and environmental monitoring. The initiative has drawn attention from global investors and energy analysts, with market watchers noting that successful execution could position Saudi Arabia as a new player in the global shale market. However, challenges remain, including water sourcing in an arid environment and managing environmental impacts related to drilling and wastewater disposal.