Gas find for Saudi Arabia

Saudia Arabia has reported that they have found new gas in the northern Jalamid area, which they are predicting could be commercially exploited.

Tests showed the Jalamid 3 discovery well in al Sannara reservoir flowing at 12.1 million cubic feet per day (cfd), the official SPA news agency said, citing Petroleum and Mining Minister Ali al Naimi.

Naimi said: "Initial estimates show that the gas can be exploited commercially," adding that the well was drilled to a depth of 9795 feet (2986 metres), Arabian Business reported.

Development

The state-owned oil giant Saudi Aramco is to oversee exploration of the gas field located some 90 kilometres east of the city of Tarif.

Saudi Arabia has been stepping up its search for gas to cater for a demand that is growing seven percent annually after an oil price rally between 2002 and 2008 fuelled the creation of more power and industrial projects.

The kingdom is expected to start producing 450 million cfd of gas from the first phase of the Karan gas project by mid-2011, state oil giant Aramco said last year.

As most Saudi gas is produced in association with oil output, volumes fluctuate with oil production. Saudi oil output is at one of its lowest levels since the most recent oil boom began as the kingdom and OPEC curb output to match falling demand - leaving the gas supply in the kingdom tight.

Aramco has said that it plans to raise its daily gas supplies by 30 percent within five years to eight billion cubic feet. The kingdom plans to build the largest ever gas plant in the kingdom expected to process more than 1.8 billion cubic feet per day of gas to supply utilities and some industries.

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