Saudi Arabia’s natural gas output to grow by 4% in 2025: IEA 

The IEA report noted that Saudi Arabia’s gas production increased by an estimated 2 percent in 2024, bolstered by the full-year impact of the Hawiyah Gas Plant expansion and the first phase of the South Ghawar unconventional project, which both came online in late 2023. File
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Updated 21 January 2025
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Saudi Arabia’s natural gas output to grow by 4% in 2025: IEA 

RIYADH: Saudi Arabia’s natural gas production is projected to rise by 4 percent in 2025, driven by the planned start-up of key projects, including Jafurah Phase 1 and Tanajib, according to an analysis. 

In its Gas Market Report for the first quarter of 2025, the International Energy Agency highlighted that Jafurah Phase 1 will add 2 billion cubic meters of natural gas annually to the Kingdom’s production capacity, while the Tanajib project is expected to contribute 27 billion cubic meters per year. 

Saudi Aramco estimates the Jafurah unconventional gas field holds 229 trillion cubic feet of raw gas and 75 billion barrels of condensate. In July 2024, the energy giant secured agreements worth $25 billion for the second phase of the Jafurah development and the third stage of expanding its master gas system. 

The IEA report noted that Saudi Arabia’s gas production increased by an estimated 2 percent in 2024, bolstered by the full-year impact of the Hawiyah Gas Plant expansion and the first phase of the South Ghawar unconventional project, which both came online in late 2023. 

Additionally, the Kingdom launched operations at the Hawiyah Gas Storage facility in September 2024, marking a milestone in its Liquid Displacement Program, which aims to replace oil with a 50:50 mix of gas and renewables in the electricity sector. 

Regional outlook 

The IEA’s report highlighted that the Middle East is expected to add more than 20 bcm in natural gas production between 2023 and 2025, representing a 3.3 percent increase. 

Oman, which increased output by over 4 percent in 2024, is projected to see an additional 3 percent growth in 2025, driven by production from Block 10 and upgrades to its domestic gas grid.

However, Qatar’s natural gas production declined by 2 percent in 2024 due to shrinking domestic consumption and the accelerated adoption of solar power.  

“Gas production in 2025 is expected to remain broadly flat as Qatar’s next major expansion project at North Field East is not expected to start up before 2026,” stated the energy agency.  

Iran’s production growth is projected to be modest, with increases of less than 2 percent in 2024 and just over 1 percent in 2025. 

The IEA also noted that the Middle East is increasingly turning to natural gas for power generation. 

“Natural gas is increasingly displacing oil and oil products in various sectors. This trend is supported by policies, evolving regulatory frameworks and market dynamics,” said IEA.  

It added: “In the Middle East, the role of natural gas in the power sector has been increasing in the past decade and oil-to-gas switching continued in 2024, driven by Iran, Iraq, Kuwait and Saudi Arabia.”  

Global outlook 

Globally, the IEA forecasts tight natural gas markets through 2025, with demand outpacing supply growth.  

“Gas market fundamentals have improved over the past year, but for now, we are still seeing significant tightness due to rising demand and muted growth in LNG capacity. Heightened geopolitical uncertainty adds to the risks,” said Keisuke Sadamori, the IEA’s director of Energy Markets and Security.  

He added: “While international cooperation on gas supply security has expanded since the recent energy crisis began, greater efforts are needed from responsible producers and consumers, who should strengthen their collective efforts to reinforce the architecture for safe and secure global gas supplies.” 

In December 2024, a separate report by the World Bank stated that global natural gas consumption growth in 2024, 2025, and 2026 is expected to return to its pre-pandemic average from 2015 to 2019. 

“Growth is primarily driven by the Asia-Pacific region, Middle East and Eurasia. Consumption growth is expected to be similar in 2025 and 2026, with Eurasia demand expected to moderate and European and North American demand to stagnate,” said the World Bank.  

It added that the future market dynamics of the gas industry will be influenced by conflict escalation in the Middle East, broader geopolitical developments, and increased competition for LNG shipments.  

The IEA also noted that global gas demand rose by 2.8 percent in 2024, significantly outpacing the average growth rate from 2010 to 2020. However, it predicts that growth will slow to below 2 percent in 2025, with Asia accounting for the majority of the rise. 


From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

Updated 53 min 25 sec ago
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From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

  • Inside the Kingdom’s drive to merge energy expertise with digital intelligence

RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.

Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.

According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.

For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.

At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.

AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.

A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.

These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.

DID YOU KNOW?

• AI could save up to $110 billion a year in global power plant fuel and maintenance costs by 2035.

• Advanced Process Control enables real-time monitoring of hundreds of oil wells in the Kingdom.

• AI-powered simulations now replace weeks of manual analysis, enabling faster operational decisions.

As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application. 

Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.

He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.

Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.

“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.

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Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.

“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.

Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.

These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.

Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.

“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.

Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.

“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.

The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.

“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”

As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.