Saudi Arabia is making significant progress on its ambitions to build a strong natural gas industry to complement its well-established oil sector, led by the $100 billion-plus unconventional gas production at the Jafurah project in the oil-rich Eastern Province. Following the award of major contracts in recent months, the key pillars of the strategy are now in place as the country shifts its upstream investment focus to gas after putting its oil expansion program on hold. Jafurah is central to Saudi Arabia’s plans to reduce the amount of liquid fuels it currently burns to generate electricity. This will help make the kingdom’s power grid cleaner while freeing up more oil for export – avoiding the need for costly investments in upstream oil capacity. The program also aims to bolster Saudi Arabia’s economic diversification by supporting domestic industries. The first phase of Jafurah is on schedule to come online in the third quarter of 2025; full production of 2 billion cubic feet per day is expected by the end of 2030. Saudi Arabia hopes to stop burning liquid fuels such as crude and fuel oil to generate electricity domestically by the end of the decade. The goal is for gas to continue to meet 50 percent of the kingdom’s electricity needs to keep pace with rising consumption, while expanding renewable energy capacity for the other half (it’s only 3 percent today). The kingdom’s increased use of gas and renewable energy will free up about 1 million barrels of oil per day for export, Saudi officials said.