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Mar 2, 2020 8:05 AM

NATGAS Can the Saudi's Shale Plan stop the Bears? Short

Natural GasOANDA

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Natural gas prices slumping nearly 40% over the past year and is showing a retracement in the Asia session.

Saudi Aramco has announced that it will be pumping $110 billion over the next couple of years to develop the Jafurah gas field, which is estimated to hold 200 trillion cubic feet of gas.

The state-owned company hopes to start natural gas production from Jafurah in 2024 and reach 2.2 Bcf/d of sales gas by 2036 with an associated 425 million cubic feet per day of ethane. The field will produce some 550,000 barrels per day of gas liquids and condensates, around 50% more than current output of just over 1 million bpd. For perspective, Aramco produced 8.9 Bcf/d of natural gas and 1 Bcf/d of ethane in 2018.

PIVOT INDICATOR STILL SIGNALLING MORE SHORT TO COME YET.
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