Saudi Liquids Burn Falls To Four-Year Lows In Early 2021

23 Apr 2021 Issue: 64 / 16 By: Jamie Ingram

Increased gas output and the contribution of solar power have enabled Saudi Arabia to cut direct liquids burn in early 2021. Reduced associated gas output alongside Opec+ cuts may mean a near-term rise, but summer 2021 burn should be down.

Saudi Arabia is now more visibly capitalizing on the completion of the 2.5bn cfd Fadhili gas processing plant, which reached full capacity last year (MEES, 19 June 2020). Oil burn volumes fell to a four-year low in early-2021 as additional gas output displaced less-efficient liquids from water desalination and power generation plants.

Last year’s ramp up of Fadhili, which processes non-associated gas from the offshore Hasbah and onshore Khursaniyah fields, enabled Saudi Aramco to boost full-year sales gas production to more than 9bn cfd for the first time (MEES, 26 March). This came despite deep Opec+ cuts to crude oil output which also severely curbed production of associated gas – an issue that should be slightly less impactful during this summer’s peak demand season as cuts are eased. (CONTINUED - 857 WORDS)