CEO: Aramco in talks to invest more in LNG

Energy behemoth Aramco is in talks to further invest in liquefied natural gas, including in US LNG projects, according to Aramco’s CEO, Amin Nasser.

Saudi Arabia’s Aramco made its first international investment in LNG last year to capitalize on rising LNG demand.

In September, Aramco agreed to buy a minority stake in MidOcean Energy, the LNG unit of US-based energy investor EIG for $500 million.

The agreement includes the option for Aramco to increase its shareholding and associated rights in MidOcean in the future.

MidOcean is currently in the process of acquiring interests in four Australian LNG projects, and it has recently also purchased a stake in LNG terminal operator Peru LNG from a unit of South Korean conglomerate SK.

Asked about whether Aramco is interested in investing in LNG in the US and other countries during the company’s 2023 earnings call on Monday, Nasser said, “for sure, we are interested in LNG.”

“We are investing in LNG via MidOcean in Australia and we are currently looking for opportunities in the US,” he said.

Nasser said that Aramco is “currently in discussions with different entities with regard to that growth market for capacity of LNG.”

Back in 2019, Aramco signed a heads of agreement with US LNG exporter Sempra for the first phase of the Port Arthur LNG project in Texas. This deal did not materialize and it included a 20-year 5 mtpa LNG supply deal and a 25 percent equity investment.

Sempra Infrastructure is now building the first phase of the project but the company is also working to develop the second Porth Arthur LNG phase.

LNG expansion to come from outside markets

Aramco reported its second highest ever net income of $121.3 billion in 2023 and is boosting its gas production in Saudi Arabia by more than 60 percent by 2030.

However, the new supplies will be used for the domestic industry and also some of it will be used for blue hydrogen exports as the company is currently in discussions with customers in Japan and South Korea.

The company is not currently planning to become an LNG producer.

“Expansion for LNG will come from outside markets for the time being,” Nasser said during the call.

Most Popular

Yang Ming books LNG-powered containerships in South Korea

Taiwan’s Yang Ming Marine Transport has decided to order LNG dual-fuel container vessels from South Korea's Hanwha Ocean as part of its ongoing fleet optimization plan.

Sabah to take stake in Petronas’ third FLNG

SMJ Energy, owned by the Sabah government, has signed a heads of agreement with Malaysian energy giant Petronas to take a 25 percent stake in the latter's third floating LNG production unit.

Japan’s LNG imports drop in June

Japan’s liquefied natural gas (LNG) imports dropped by 2.8 percent in June compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

More News Like This

Atlantic LNG shipping rates climb this week

Atlantic spot LNG shipping rates rose this week, whilst European prices dropped compared to last week.

US LNG exports increase to 30 cargoes

US liquefied natural gas (LNG) plants shipped 30 cargoes during the week ending July 16. According to the Energy Information Administration, pipeline deliveries to the LNG terminals rose compared to the prior week.

Cameron LNG hits new milestone

Sempra Infrastructure, a unit of Sempra, and its partners have shipped the 1,000th cargo of liquefied natural gas from the Cameron LNG export plant in Louisiana since 2019.

Cheniere’s Sabine Pass terminal ships 3,000th LNG cargo

Cheniere’s giant Sabine Pass LNG terminal in Louisiana has shipped the 3,000th cargo of liquefied natural gas since its launch in 2016.