Saudi Aramco is positioning the Jafurah unconventional gas field as the primary feedstock source for its blue hydrogen and blue ammonia strategy. The field, located in Saudi Arabia's Eastern Province, is expected to produce up to 2 billion standard cubic feet of sales gas per day by 2030. Aramco plans to process the sour gas, capture and store the CO2, and convert the hydrogen into ammonia for export to markets in Asia and Europe. The company has already shipped a pilot batch of blue ammonia to Japan in 2020 as a proof of concept. The Jafurah development also supports Aramco's goal to displace crude oil from domestic power generation with gas-fired capacity, reducing emissions intensity while continuing to monetize hydrocarbon reserves. Carbon capture is central to the value proposition for overseas buyers who will rely on emissions accounting certificates. Challenges include the unconventional geology requiring dense well spacing and large water volumes for stimulation. The commercial risk is whether buyers will commit to long-term contracts for blue hydrogen or ammonia as green alternatives become cheaper. For investors, Jafurah signals Aramco's attempt to extend its gas portfolio value through the energy transition.
