WEEKLY ENERGY RECAP: Saudi Arabia, the most reliable supplier of oil and soon gas

The Jafurah gas field is located near existing export facilities. (Supplied)
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Updated 26 February 2020

WEEKLY ENERGY RECAP: Saudi Arabia, the most reliable supplier of oil and soon gas

  • The development of the gas sector comes as the Kingdom seeks to diversify its economy

The Kingdom of Saudi Arabia already has one of the world’s largest proven reserves of conventional gas of about 300 trillion cubic feet. There are also unconventional gas reserves, with estimated reserves of more than 600 trillion cubic feet.

The development of the giant Jafurah gas field in the eastern region of Saudi Arabia will catapult the Kingdom to the forefront of gas producers in the world.

According to the United States Energy Information Administration (EIA), the US is ranked 4th globally with gas reserves of 464 trillion cubic feet. This was before the discovery of the Jafurah gas field that will add 200 trillion cubic feet to the already proven 300 trillion cubic feet of gas reserves in the Kingdom, bringing the grans total to around 500 trillion cubic feet.

So this means Saudi Arabia will overtake the US in the list of countries with the biggest gas reserves.

Moreover, the giant Jafurah gas field is located near existing export facilities which will make its delivery to customers much quicker and easier — a benefit not shared by many of the other recent gas discoveries worldwide.

While Russia still holds the world’s largest natural gas reserves, Russian gas is delivered mostly to Europe via pipeline, and does not benefit from extensive LNG infrastructure that would allow the gas to be exported by ship worldwide to various destinations.

The development of the gas sector comes as the Kingdom seeks to diversify its economy and reduce its reliance on crude oil sales. It will help to power the next generation power and desalination plants while also providing the feedstock for the petrochemicals sector that converts ethane to ethylene.

Even before this latest discovery, gas has been playing a progressively more important role in the Kingdom’s economy.

In fact it has expanded to account for almost 57 percent of the Kingdom’s energy mix, and the goal is to reach 75 percent by 2030.

Already the world’s largest and most reliable oil exporter, the Kingdom will now be able to add gas to that claim.


China says it has sold nearly four billion masks abroad

Updated 05 April 2020

China says it has sold nearly four billion masks abroad

  • Beijing has encouraged factories to increase production of medical supplies
  • China has also exported 37.5 million pieces of protective clothing, 16,000 ventilators and 2.84 million COVID-19 testing kits since March 1
BEIJING: China has sold nearly four billion masks to foreign countries since March, officials said Sunday, as they tried to stem widespread fears over the quality of medical exports.
Despite Chinese cases dwindling, Beijing has encouraged factories to increase production of medical supplies as the pandemic kills over 60,000 globally and parts of the world face a protective equipment shortage.
China has exported 3.86 billion masks, 37.5 million pieces of protective clothing, 16,000 ventilators and 2.84 million COVID-19 testing kits since March 1, customs official Jin Hai said, with orders to more than 50 countries.
She added the country’s medical supply exports were valued at $1.4 billion.
However numerous nations — including the Netherlands, the Philippines, Croatia, Turkey and Spain — have complained about substandard or faulty medical products shipped from China.
Last week, the Dutch government recalled 600,000 masks out of a Chinese shipment of 1.3 million that did not meet quality standards.
China said the manufacturer “stated clearly that (the masks) are non-surgical.”
Spain also rejected thousands of rapid test kits sent by an unauthorized Chinese company after it found that they were unreliable last week.
Chinese officials hit back on Sunday at media reports over defective medical supplies, saying that they “did not reflect the full facts.”
“In reality there are various factors, such as China having different standards and different usage habits to other countries. Even improper use can lead to doubts over quality,” said Jiang Fan, an official with the Ministry of Commerce.
The comments echoed remarks from Foreign Ministry spokeswoman Hua Chunying, who over the past week has repeatedly urged Western media not to “politicize” or “hype up” the issue.
Earlier this week, Beijing tightened regulations for exported coronavirus medical equipment, requiring products to fulfil both domestic licensing standards and that of their destination countries.
China has also increased its production capacity of COVID-19 testing kits to over 4 million a day, said Zhang Qi, an official with the National Medical Products Administration.