Saudi Arabia Finally Joins the Natural Gas Wave - Bloomberg
The world’s biggest oil producer is finally moving to grab a piece of the booming natural gas market, the latest proof that the industry expects the fuel to play a significant part in the energy transition.
In a strategic shift, Saudi Aramco agreed to buy a stake in MidOcean Energy, marking its first investment in liquefied natural gas. MidOcean is in the process of acquiring interests in four Australian LNG projects and is also part of a consortium to buy Sydney-based Origin Energy Ltd.
Other investments may be on the horizon. Aramco’s Upstream President Nasir Al-Naimi said in an email Sunday the company is looking for more acquisitions. Officials have been in talks with exporters in the US this year, according to people with knowledge of the matter.
The Saudi company has been trying to get into the natural gas space for a while. It hired a team of LNG traders in Singapore and was in talks with producers before the Covid pandemic upended negotiations.
Aramco aims to spend $110 billion developing the Jafurah gas field that will help double output by 2030 and make the kingdom a gas exporter for the first time. It’s also weighing exporting that gas as LNG.
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