Saudi Aramco targets two US natural gas producers

Aramco

Saudi Aramco, the world’s biggest oil exporter, has initiated talks with two liquefied natural gas (LNG) producers in the United States to bolster its overseas expansion strategy.

The oil major is negotiating with Tellurian and NextDecade, Reuters reported, quoting informed sources.

Aramco is considering buying a stake in Tellurian’s Driftwood LNG plant in Louisiana, which has a capacity of 27.6 million metric tonnes per annum, the report said.

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In addition, Aramco is exploring a potential long-term gas purchase agreement with NextDecade for its $18 billion Rio Grande facility.

The state-backed oil giant is already competing with UK-headquartered Shell to acquire Singapore’s Temasek-owned LNG trading firm Pavilion Energy.

• Aramco to raise up to $13bn from new share offering
• Aramco considers LNG exports as reserves grow
• Aramco invests $8bn to raise gas output by 60% 

The company ventured into the global LNG market last September with a $500 million investment in US-based MidOcean Energy.

In March, Aramco CEO Amin Nasser said that the company intends to expand its LNG presence globally, given it plans to use all its natural gas production domestically.

He added that Aramco has no intention of building LNG capacity in the kingdom and is discussing opportunities with entities in the US, Australia and other parts of the world.