Saudi Prince ibn ‘Abd al-‘Aziz ibn Salman, Assistant Minister of Petroleum and Mineral Resources for Petroleum Affairs, said Saudi Aramco sells crude to power stations for direct burning at $4.50/B [about $0.80/mn BTU], and fuel oil at $3.50/B [about $0.64s/mn BTU], state-owned news agency SPA reported. It sells gas to power producers at $0.75/mn BTU.
Saudi Arabia’s domestic energy consumption will double to 8mn barrels of oil equivalent/day (boe/d) by 2030 if soaring power demand is not slowed, he said on 27 January. The prince, who heads the kingdom’s energy rationalization program, spoke at a signing of an Memoradum of Understanding (MOU) with five government departments and institutions to lower power use. An energy efficiency law, expected in 2013, aims to cut demand by 30% (MEES, 14 December 2012). “We can benefit from rationing by reducing the volumes of crude oil sold to the electricity companies and selling it on the international market,” he said. Oil Minister Ali Naimi has warned about the impact on exports if domestic consumption is not curbed. Aramco’s next major oil project to come on stream is the 900,000 b/d Manifa field, but this is to maintain production capacity by replacing maturing fields’ decline. Manifa had been expected to produce 500,000 b/d in 2013 and hit full output next year. It will start early production in June, said Nasir al-Naimi, Saudi Aramco Vice President, northern area oil operations (MEES, 25 January). (CONTINUED - 680 WORDS)
