Riyadh - Mubasher: Saudi Arabia will need to grow gas output by an annual average rate of either 3.7%, in the base case scenario, or 6.6 %, in the high case scenario, in the decade to 2030, according to a recent report by Jadwa Investment.

Jadwa also estimated that the government could save $71 for every barrel of crude oil substituted by a barrel of equivalent of gas in electricity generation in 2030, the report added.

Continued investment in the Saudi natural gas sector has resulted in steadily rising output over the years, with a sizable ramp up in production in the last decade, with Saudi Arabia holding the world’s sixth largest proven gas reserves, and was the seventh largest producer of gas in 2015, the report indicated.

Despite this, gas consumption has grown as fast as production. Competing demands, primarily from two sectors, petrochemicals and electricity generation, has meant Saudi Arabia has consistently consumed all its gas, explained the report.

The pace of growth in Saudi gas demand is not likely to ease, with electricity consumption pushed up by industrial development, in line with the Vision 2030, and rising population levels, the report highlighted.