Aramco is looking to buy a stake in a liquefied gas plant outside the kingdom

Bloomberg reported that Saudi Aramco is considering investing in a liquefied natural gas facility outside the Kingdom.

 

This was with the increasing global demand for fuel after the Russian invasion of Ukraine.

 

Aramco is in early discussions with developers of LNG plants to buy a stake and secure supplies through a purchase agreement, according to Bloomberg’s sources.

 

LNG consumption is going to rise in the coming years as Europe rushes to replace pipeline gas from Russia.

The value of global trade in liquefied natural gas doubled last year to more than $450 billion, according to the International Energy Agency.

 

One of the sources said Aramco was studying projects in the United States and Asia.

 

Another person said her preference would be for a facility that could easily ship cryogenic fuel to Asia, the world’s largest market.

 

“Bloomberg” stated that obtaining a stake in an LNG plant would help Aramco achieve its goal.

 

On the other hand, Shell said in a report last month that it needs more investment in liquefaction projects

Aramco previously considered getting into LNG in 2019.

 

It also considered buying a 25% stake in Sempra Energy’s Port Arthur facility in Texas.

 

The company backed off after the coronavirus pandemic weighed on energy demand.

 

Big Reserves

 

The kingdom has some of the largest gas reserves in the world, although it is mainly used for the domestic market.

 

According to Bloomberg, Aramco plans to spend about $100 billion in the next decade to boost gas production in the kingdom.