LNG Deal: Aramco Seeks to Strengthen Global Footprint
In a bid to jump in the liquefied natural gas LNG, Saudi’s oil company Aramco acquired a minority stake in MidOcean. EIG-owned MidOcean is an LNG company based in the US. Seeing mounting global demand for (LNG), reaching nearly 400 million tons in 2022, Aramco bought a $ 500million stake with prospects of increasing the stake.
“This is an important step in Aramco’s strategy to become a leading global LNG player,” said Aramco President Nasir K. alnaimi.
The report issued by the Journal of Petroleum Technology website which specializes in the field of energy revealed that Aramco has followed a global trend and succeeded in achieving it. Through a multi-billion-dollar project, Aramco is seeking to benefit from the colossal Jafurah field amid expectations of producing 2 billion cubic feet per day by 2030.
Middle East oil and gas production is expected to rise at a compound annual growth rate of 1.42% until 2030, according to the report.
The list of the top 10 most anticipated oil and gas fields in the Middle East shows that Saudi Arabia, Qatar, Iran and Iraq continue to lead the region in fossil fuel production, thus significantly dominating the global market.
Signs of the Deal
Notably, Bloomberg reported that Saudi Aramco is considering investing in a liquefied natural gas facility outside the Kingdom.
This was due to 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; while another source 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.
