Saudi Aramco in talks with two US firms for LNG projects: Sources

05 June, 2024

Saudi Aramco is in talks with U.S. firms Tellurian and NextDecade on two separate liquefied natural gas (LNG) projects as the Saudi firm seeks to boost its gas trading and production, three sources close to the talks told Reuters.

Aramco is in talks with Tellurian to buy a stake in its 27.6 million metric ton per annum (mtpa) Driftwood LNG plant near Lake Charles, Louisiana.

Aramco is also in talks with U.S. LNG firm NextDecade for a long-term gas purchase agreement from a proposed fifth processing unit at its $18 billion Rio Grande facility.

Aramco declined to comment. Tellurian said it does not comment on market speculation. The company is seeking to strengthen its position in the LNG market, which is set to grow globally by 50% by 2030, especially in the United States, where LNG capacity is set to almost double over the next four years.

Aramco made its first LNG investment abroad when it bought a stake in U.S.-based MidOcean Energy for $500 million last year.

In March, Reuters reported that Aramco was in talks to invest in Sempra Infrastructure's Port Arthur project in Texas.

It is also competing with Shell to buy the assets of Temasek-owned LNG trading firm Pavilion Energy.


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