Gas Expansion and Jafurah Project
Saudi Aramco does not want to be only oil company. Rather it wants to be gas supplier also.
- Jafurah Field: This is mega unconventional gas field of Saudi Arabia. Aramco has finalized $11.1 billion contracts. The purpose of this project is not only to extract gas, but also to process it into ethane, NGL (Natural Gas Liquid), and condensate.
- Master Gas System: Aramco is expanding it's whole gas system across the Saudi Arabia in order to provide cheap gas to industry and domestic needs instead of oil.
- Income Increase: These projects will be completed until 2030. Company will export gas and profit will be $12 to $15 billion yearly.
Downstream and Liquid to Chemicals
Aramco has new formula "Don't sell oil, instead of manufacture products from oil".
53% of crude oil is sending to refineries. If crude oil price low, they can maintain their profit by manufacturing petrol, diesel, plastics, and chemicals. HAPCO (China) and Shaheen Project (South Korea) are being developed in order to capture Asian market. Aramco is not selling only petrol, rather than it is buying fuel distribution companies. Gas and Oil Pakistan is owned by Aramco in Pakistan.
New Record of Oil Demand
The demand of oil will be 107.3 million bpd in 2026 expected by Aramco. It means oil prices will be stable and demand is increasing.
Deep Eye on Financial Health
The gearing ratio is 3.8%. It means it is debt free company. This is very less loan in business language. Less gearing ratio shows that Aramco has huge amount of money.
Company has SAR 103 billion free cash flow. This is net profit amount after all expenses. This money is expanded into dividend and new projects. Aramco has invested SAR 50 billion in one quarter.
Reserve Replacement
Saudi Arabia has reserve replacement rate more than 100%. It means company has huge reserves of gas which will never finish. Rather reserves are increasing by time.
Summary Table for Quick Review
| Sector / Project | Operational Status | Target Impact |
|---|---|---|
| Gas Expansion | Jafurah Phase 1 (2025 Launch) | $12B - $15B Annual Cash Flow |
| Downstream Strategy | 53% Crude to Chemicals Integration | $8B - $10B Cash Flow Boost |
| Liquids-to-Chemicals | Shaheen & Amiral Development | Higher Value Added Margins |
| Retail Network | 18,000 Service Stations (2025) | Global Brand Expansion |
| Financial Stability | 3.8% Gearing Ratio (Q4 2025) | Strong Capital Discipline |
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