Saudi Aramco begins Jafurah condensate sales to U.S. majors and Indian refiner ahead of first exports

Summary

Saudi Aramco has started marketing condensate from its Jafurah gas development to buyers including U.S. oil majors and an Indian refiner, signaling the project’s transition toward initial exports, according to trade sources.

Saudi Aramco has begun selling cargoes of ultra-light condensate from its giant Jafurah gas project to international buyers, including companies in the United States and India, trade sources said.

The sales mark an early commercial step for the Jafurah development, one of the company’s largest gas investments and a key pillar of its strategy to expand gas output and diversify revenue streams.

Early cargoes sold to international buyers

Trade sources said buyers include Chevron, Exxon Mobil, and Indian Oil Corporation, with cargoes scheduled to load in the coming weeks. The companies have not publicly confirmed the purchases.

Pricing for the condensate was reported at premiums of roughly $2–$3 per barrel above Dubai benchmarks on a free-on-board basis, reflecting strong demand for light feedstocks.

Jafurah central to gas expansion plans

Jafurah is widely viewed as one of the largest shale gas developments outside North America. Industry estimates put its resources at about 229 trillion cubic feet of gas and tens of billions of barrels of associated condensate.

Aramco expects the project to significantly boost domestic gas supply and support industrial growth, while providing new streams of condensate for export markets.

Condensate valued by refiners and petrochemical producers

Condensate — a light hydrocarbon liquid produced alongside natural gas — is widely used to produce petrochemical feedstocks such as naphtha and to blend with heavier crude grades.

Preliminary assessments suggest Jafurah’s output is relatively light and low in sulfur, characteristics that can command strong refining demand.

Why this matters

The start of condensate marketing from Jafurah highlights Saudi Arabia’s push to expand its gas and petrochemical footprint alongside crude exports.

For global energy markets, new supplies of light hydrocarbons could influence refining margins and feedstock availability, particularly in Asia, while reinforcing competition among producers as demand patterns evolve.

FAQs

Q1. What is the Jafurah project?

Saudi Arabia’s flagship unconventional gas development aimed at boosting gas production and generating condensate.

Q2. Who are the buyers?

Trade sources cited Chevron, Exxon Mobil, and Indian Oil Corporation, though the companies have not publicly confirmed purchases.

Q3. Why is condensate important?

It is used to produce petrochemical feedstocks and refined products and can be blended with heavier crude.

Q4. How large is the resource?

Estimates suggest about 229 trillion cubic feet of gas and substantial associated condensate volumes.

Q5. When will exports ramp up?

Initial cargoes are being marketed now, with production expected to expand over the coming years.

Q6. What does this mean for markets?

Additional supply of light hydrocarbons could affect refining economics and regional feedstock balances.