Saudi Arabia launched on Sunday its Haradh gas plant - an expansion project intended to help fuel economic growth and industrialisation in the world's largest oil exporter.
The Eastern Province facility, inaugurated by de facto ruler Crown Prince Abdullah, is capable of processing 1.5 billion cubic feet per day of non-associated gas and pumping 300,000 barrels per day (bpd) of Arab Light crude oil.
It will also ship 170,000 bpd of condensates to Abqaiq for processing then to Ras Tanura for refining into transport fuels.
The project takes "into consideration the kingdom's relative advantage of abundant, relatively inexpensive energy to propel the national industrialisation and development drive, stimulate economic growth and avoid exclusive dependence on crude oil exports," Oil Minister Ali al-Naimi said.
The Haradh plant and a similar facility at Hawiyah, completed in 2002, are located near the giant Ghawar oilfield.
Saudi Aramco's president and chief executive officer Abdullah Jumah said the Haradh area will be able to pump 900,000 bpd of crude from existing and planned units to be completed within two years.
Opec power Saudi Arabia has been producing about 8.4 million bpd of oil, but holds the capacity to pump 10.5 million. It holds the world's fourth largest deposits of natural gas with reserves of 235 trillion cubic feet.
Riyadh last July presented three areas in natural gas exploration to international energy companies to be offered in the kingdom's first-ever licensing round.
The Saudi oil minister said the bidding process will kick off in just over a week.

Copyright Reuters, 2004

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