Saudi Arabia Plans to Reduce Tight Gas Production Cost to US Levels

Saudi Arabian Oil Co., also known as Saudi Aramco, plans to bring down cost of producing tight gas to levels prevailing in the US, news agency Bloomberg reported citing a company official.

The state-owned producer is now targeting a cost of $2 to $3 per thousand cubic feet of tight gas, Adnan Kanaan, manager of the company’s Gas Reservoir Managing department said in a report published Tuesday by the Society of Petroleum Engineers, according to Bloomberg.

Saudi Arabia is keen on developing its shale and tight gas deposits to reduce the use of crude oil and other liquid fuels at power plants and free more oil for exports, the news agency said.

The Kingdom is estimated to hold as much as 645 trillion cubic feet of technically recoverable shale gas, the world’s fifth-largest deposits.