Saudi Aramco Begins Operations at Karan Gas Field

Saudi Aramco has started producing gas from its Karan field in the Persian Gulf.

Karan, Aramco ‘s first non-associated gas field and a key part of Saudi's state energy company’s plan to increase gas production to reduce dependency on oil -- would reach its summer 2011 target production of 400-450 million cubic feet per day (cfd) of gas.

In its 2010 annual review, Aramco said that Karan should reach a full production capacity of 1.8 billion cfd in April 2013, in time for the peak power demand period of May to September.

Saudi Arabia is focusing on tapping new sources of gas that are not tied to oil production to help meet seasonal demand for electricity and rising petrochemical feedstock needs.

Aramco is looking at unconventional tight and shale gas sources, focusing initially on the northwest of the country and around Ghawar, the world's biggest oil field, where gas infrastructure is already in place and hopes to identify specific wells in 2011.

In addition, Aramco is developing two major gas projects, Wasit and Shaybah natural gas liquids. The project are expected to be completed in 2014. The company is also looking at new offshore prospects including deep-water fields.

Wasit, together with the Khursaniyah and Karan gas plants, should help Saudi Arabia reach its targeted production increase of raw gas to 15.5 Bcfd by 2015 from 10.2 Bcfd last year.