Saudi Aramco negotiating $110 billion project for one of world's biggest gas fields

Saudi Arabia is negotiating with investors to develop a $110 billion project at one of the world's largest unconventional gas fields, according to reports.

Saudi Aramco began talks with potential backers for its Jafurah gas development located in the east of the kingdom, Bloomberg reported sources as saying on Monday.

The gas field is estimated to hold 200 trillion cubic feet of raw gas and in February 2020 Aramco announced it received regulatory approval for its development, which it expected would enhance the company’s position in the energy market.

The company is reportedly on the hunt for investors to help fund the development of projects at the gas field and has reached out to private equity firms and large funds as part of their plans, the sources who wished to remain anonymous told Bloomberg.

Talks on the matter are still in their early days and plans could change, but the opening of the development to investors would follow years of efforts to attract foreign capital into Aramco.

Aramco expects to begin production in the gas field in 2025, according to the US outlet.

The petroleum and natural gas company also outlined their expectations in 2020 that the field will produce approximately 550 thousand barrels per day of gas liquids and condensates.

Saudi Arabia also said a large portion of gas in the development would be used to create blue hydrogen - which would allow some fuel to be exported as a clean energy source - Bloomberg reported Energy Minister Abdulaziz bin Salman as saying in October 2021.

The report came a day after Saudi pledged to neutralise planet-warming emissions by 2060, via carbon sequestration and hydrogen.

Saudi also displayed visions of its touted environmentally-friendly future during the UN COP27 climate summit held in Egypt last month but did not highlight the damage fossil fuels - which Riyadh is reliant on for finances - are doing to the planet.

The New Arab has approached Aramco for comment on the issue.