HAWIYA, 18 October — Crown Prince Abdullah, deputy premier and commander of the National Guard, yesterday launched the $4 billion Hawiya gas plant, the largest in the world. (Picture on page 2)
Located in the Ghawar oil field area, the plant, which is the first Saudi project for non-associated gas, will boost the Kingdom’s gas production by more than 30 percent.
The plant has a production capacity of 1.4 billion cubic feet of non-associated gas daily.
The launch was attended by a large number of princes and high-ranking officials including Prince Sultan, second deputy premier and minister of defense and aviation.
Addressing the ceremony, Petroleum and Mineral Resources Minister Ali Al-Naimi said the plant made the Kingdom the largest gas producer in the Middle East.
He said the Kingdom’s gas production has increased from three billion cubic feet in 1990s to 5.8 billion cubic feet. "This figure will reach seven billion cubic feet after the completion of Haradh plant next year," he added. The Kingdom’s natural gas production has reached 700,000 barrels daily.
He highlighted the Kingdom’s role in stabilizing the international oil market, by ensuring adequate supply. "Our oil policy has helped us win the respect of both producers and consumers."
Naimi said the Kingdom’s energy strategy was based on three pivotal aspects: Intensive exploration for new reserves; expansion of gas facilities; and establishment of new plants to produce non-associated gas.
Gas was increasingly being utilized for electricity generation, desalination and industrial production. "Efforts are under way to supply 400 million cubic feet of gas daily to the Yanbu industrial city," he said. He estimated the Kingdom’s gas reserves at 224 trillion cubic feet, 40 percent of which non-associated gas.
"A third plant will be established, complementary to Hawiya and Haradh, to extract ethane gas and liquefied gas from the output of the two plants and use them as raw materials for petrochemical industries," he said.
Naimi said the Kingdom was determined to push through its gas utilization and production strategy with special focus on non-associated gas.
The chief executive officer of Saudi Aramco, Abdullah Juma, said another plant in nearby Haradh, scheduled to be completed next year, was expected to boost gas production to seven billion cubic feet (210 million cubic meters) per day.
He said Hawiya is designed to produce 2.4 billion cubic feet of non-associated gas. Over 10,000 people had worked on the project.
Hawiya, which increased domestic gas supply by more than 30 percent, now produces 1.5 billion cubic feet of gas, 160,000 barrels of hydrocarbon condensates and 1,000 metric tons of sulfur every day.
The project transports gas by pipeline for the first time to the Riyadh area to fuel three electric power plants, which previously consumed crude oil. Gas-fired systems have freed up a considerable amount of crude for export and are more environmentally friendly.
Hawiya started initial production in September 2001, attaining full capacity in December that year. The plant has boosted supply of gas to the domestic Master Gas System (MGS) to about 5.4 billion cubic feet daily. Production is due to double by 2010.
The MGS network, initially set up some 25 years ago, now extends from the Gulf to the Red Sea, and from the north to the south of the Kingdom.
