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FYI relative to the recent discussion on natural gas.

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http://www.arabnews.com/Article.asp?ID=26617

Gas Plant Ready Ahead of Schedule
5/25/2003

Agence France Presse



RIYADH, 25 May 2003 ÷ Haradh Gas Plant, the second multibillion-dollar
project for non-associated gas in Saudi Arabia, has started experimental
production and is almost ready to come on-stream, Saudi Aramco said
yesterday.

ãPartial production of Haradh Gas Plant started on April 23, as the
first processing unit of the plant began operation,ä Nasser Al-Nafisi,
head of Saudi Aramco public relations, said in a statement.

The plant will be on stream with full capacity at the end of July, five
months ahead of schedule, Nafisi added.

The project, under way 280 km (175 miles) southwest of Dhahran, is part
of Aramcoâs long-term program of non-associated gas exploration and
development.

It will increase gas supplies by 1.5 billion cubic feet (42.5 million
cubic meters) per day to the Kingdomâs Master Gas System (MGS), bringing
the companyâs combined gas production to about seven billion cubic feet
(198.2 million cubic meters).

The plant is designed to process 1.6 billion cubic feet (45.3 million
cubic meters) of non-associated feed gas daily, increasing the total
amount of feed gas to be processed by the MGS to about nine billion
cubic feet (254.8 million cubic meters).

The project will recover 145,000 barrels per day (bpd) of high quality
condensates, which will be transported to Abqaiq plants for treatment
via a 230-km (144-mile) pipeline.

Haradh is a twin of the Hawiyah Gas Plant, which was commissioned in
2002 as Saudi Arabiaâs first non-associated gas plant, adding 1.5
billion cubic feet of gas to the MGS and boosting gas supplies by more
than 30 percent.

The two plants are located in Ghawar, the largest oilfield in the world,
and are expected to almost double the Kingdomâs gas production.

Hawiyah also produces 160,000 barrels of hydrocarbon condensates and
1,000 metric tons of sulfur each day.

The project transported gas by pipeline for the first time to the Riyadh
area to fuel three electric power plants, which previously consumed
crude oil. 

Resorting to gas-fired systems has freed up a considerable amount of
crude for export. 

Gas-fired plants are also more environmentally friendly.

Gas production is due to reach around 10 billion cubic feet (283.1
million cubic meters) per day by 2010.

The MGS network, set up some 25 years ago, extends from the Gulf to the
Red Sea, and from the north to the south of the Kingdom.

Saudi Arabiaâs proven natural gas reserves grew in the past decade to
224 trillion cubic feet (6.34 trillion cubic meters), the fourth largest
in the world, about 85 trillion (2.41 trillion cubic meters) of which is
non-associated gas.

Aramco officials say that initial assessments indicate that vast
reserves remain to be discovered in many parts of the Kingdom. The
assessments suggest that Saudi Arabia holds one of the largest and most
accessible gas reserves in the world.

Saudi Arabia is currently the worldâs leading oil producer and exporter
with production well above nine million barrels a day, but it will be
slashed to 8.256 million barrels on June 1.

The Kingdom signed in June 2001 preliminary agreements with eight
international oil companies for three mega gas projects worth some $25
billion in investments.

Final agreements on the projects have been delayed several times, but
the Kingdom now expects to sign deals on two of the three projects soon.

The Kingdomâs gas industry employs about 35,000 workers in direct jobs
in gas production, processing, manufacturing and marketing operations.



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Arab News
Saudi Arabia's First English Language Daily
http://www.arabnews.com/


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