Aramco and Adnoc to invest in US LNG projects

Reuters/Issei Kato

Two of the biggest oil companies in the Gulf region plan to invest in US liquefied natural gas (LNG) projects.

Saudi Aramco, the world’s largest oil company based on daily production, is holding discussions to invest in the second phase of Sempra Infrastructure’s Port Arthur LNG project in Texas, Reuters reported, citing informed sources.

Aramco is in talks to acquire some or all volumes from one of the two liquefaction units at Port Arthur’s second phase. Each unit can produce up to 13.5 million tonnes per annum.

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Abu Dhabi National Oil Company (Adnoc) is in talks with Texas-headquartered LNG exporter NextDecade for a potential offtake from a proposed fourth processing unit at the $18 billion Rio Grande LNG export facility.

Last month, Adnoc closed the acquisition of a 25 percent stake in Austrian energy and chemicals group OMV.

Despite the anticipated doubling of US LNG capacity over the next four years, various LNG project developers are facing financial challenges in advancing their export terminals as investors become more discerning.

Regulatory pressures on banks to prioritise ESG issues add to the complexities, the report said.