Saudi Arabia is making a powerful move in global energy markets with the first exports of ultra‑light condensate from its massive Jafurah gas project reaching buyers in the United States and India. This development marks a strategic shift for the kingdom, traditionally focused on crude oil, as it broadens its energy export portfolio, strengthens economic resilience and deepens trade ties with major fuel consumers around the world.
In a bold step that could redefine Riyadh’s role in global energy supply, Saudi Aramco has sold multiple cargoes of Jafurah condensate to major American and Indian companies, with shipments scheduled to begin later this month and into March. These sales signal Riyadh’s growing ambition to compete more broadly in the market for natural gas liquids, not just crude oil.
New Phase for Saudi Energy Exports
Saudi Aramco’s sale of ultra‑light condensate represents the first major export of this energy grade from the $100 billion Jafurah gas project, one of the largest gas developments worldwide. The cargoes were purchased by major US firms Chevron and Exxon Mobil, along with Indian Oil Corp, marking a significant stride in Saudi Arabia’s energy diversification strategy.
Aramco’s decision to sell these condensate cargoes at a premium above Dubai crude benchmarks reflects strong global interest in lighter hydrocarbon products that are versatile in refining and petrochemical processing. Industry sources reported that these cargoes fetched premiums of between two to three dollars per barrel over Dubai quotes on a free‑on‑board basis, underscoring confidence in Saudi condensate quality and demand prospects.
Importantly, this shipment campaign marks the start of a planned monthly export programme, with the potential to ship four to six cargoes of about 500,000 barrels each from Saudi ports later this year. Analysts say this steady cadence could cement Riyadh’s position as a key supplier of liquid fuels beyond its traditional crude exports.
What Is Condensate and Why It Matters
Condensate is a hydrocarbon liquid that forms as natural gas cools and condenses. It is lighter than conventional crude oil and richer in components useful for refining and petrochemical feedstock like naphtha and middle‑distillate fuels. Because of its high API gravity and low sulphur content, condensate appeals to refineries seeking efficient conversion into specialized fuels or chemical feedstocks.
The Jafurah condensate’s composition — including about 40 percent heavy naphtha yield — makes it especially valuable for petrochemical integration, a market segment expected to grow alongside global demand for plastics, specialty chemicals and advanced materials.
For Saudi Arabia, leveraging associated liquids from gas plants expands the kingdom’s export portfolio and aligns with national strategic goals that emphasize economic resilience and future‑proofing its hydrocarbon industries. Economic diversification — including revenue from gas liquids — supports broader Vision 2030 objectives.
Strategic Partnerships with the United States
The sale of several condensate cargoes to Chevron and Exxon Mobil — two of the most influential energy majors in the United States — positions Riyadh as a reliable supplier to Western markets. Analysts say this is significant because it aligns Saudi Arabia more closely with long‑term US energy needs and refining capacity, even as global crude markets face volatility and shifting geopolitical dynamics.
Chevron has contracted two shipments scheduled for late February and March loading, while Exxon and Indian Oil are set to lift their cargoes next month. Some of the initial cargoes for Chevron may be redirected to refiners in South Korea and Thailand, illustrating how interconnected supply chains have become for condensate and light hydrocarbon products.
US market engagement is important for Aramco, as access to American energy infrastructure and buyer networks enhances Saudi Arabia’s influence in the Western energy sphere, a domain historically dominated by crude flows. The interest from US firms shows that Saudi condensate products have competitive qualities and that buyers are seeking diversity in feedstock sources.
Deepening India’s Energy Links
On the other side of the globe, India stands out as one of the world’s fastest‑growing energy markets, with demand for refined fuels and petrochemicals rising as its economy expands. The purchase of Jafurah condensate by Indian Oil Corp comes at a moment when India is actively rebalancing its crude import basket towards Middle Eastern suppliers, including Saudi Arabia.
In early 2026, data showed Saudi crude oil imports to India reaching their highest levels in years, temporarily overtaking Russian volumes in February, a shift fuelled by logistical, policy‑driven and economic factors. This trend amplifies the importance of Riyadh’s new condensate sales, as India diversifies feedstock sources for its refineries and petrochemical complexes.
India’s energy landscape is rapidly evolving, with strategic partnerships being pursued to secure stable supplies of both crude and complex hydrocarbon liquids. Aramco’s entry into condensate exports to India strengthens Riyadh’s role not just as a crude supplier but as a partner in integrated energy supply chains that feed India’s industrial growth.
Broader Implications for Global Energy
The export of Jafurah condensate should be seen in the context of a broader shift in energy dynamics. The global market for natural gas liquids — which includes condensate, pentanes and other products — is projected to expand significantly by the end of the decade as petrochemical demand rises and refineries seek more flexible crude blends. Forecasts indicate natural gas liquid markets could reach nearly one billion tons in volume by 2035, a sign of sustained growth across sectors.
For Saudi Aramco and Riyadh’s policymakers, expanding into condensate exports reduces reliance on traditional crude revenue and positions the Kingdom as a more versatile player. By making early inroads into key markets like the US and India, Saudi Arabia is leveraging its strategic advantage in gas and liquids to outpace competitors and secure enduring energy relationships.
