September 29, 2023 [KENH TE & XAY DUNG]- Saudi Aramco, the world’s largest crude oil exporter, recently entered the global LNG business by purchasing a minority stake in LNG company MidOcean Energy, which is in the process of acquiring its shares. part of four Australian LNG projects, Oil Price reported.
Aramco has signed agreements to acquire a strategic minority stake in MidOcean Energy for $500 million, marking the company’s first international investment in the LNG sector.
MidOcean Energy was founded and managed by EIG, an institutional investor in the global energy and infrastructure sector. Aramco has signed an agreement to sell 49% of Aramco Pipeline Company shares to the company in 2021.
The LNG equity deal announced Thursday includes an option for Aramco to increase its equity ownership and related rights in MidOcean Energy in the future. Aramco said the deal is subject to closing conditions, including regulatory approvals.
The Saudi Arabian energy giant has been looking for months to tap into its global gas and LNG business. Earlier this year, it was rumored that the company was in early talks with developers to secure a stake in a project in the US or Asia.
Getting into the LNG business would be another lucrative venture for Saudi Aramco, as LNG demand is forecast to only increase in the coming years as Europe gradually weans Russian gas and Asia looks to adopt more natural gas instead of coal.
Commenting on today’s agreement, Aramco Upstream Chairman Nasir K. Al-Naimi said: “This is an important step in Aramco’s strategy to become the world’s leading LNG company.”
Mr. Al-Naimi added: “MidOcean Energy is well prepared to capitalize on growing LNG demand and this strategic partnership reflects our willingness to cooperate with leading international companies. to identify and unlock new opportunities at the global level.”
EIG President and CEO Blair Thomas said that MidOcean Energy’s initial focus is on LNG contracts in Australia, but the company believes the scope of the opportunity is global.
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