Saudi oil giant Aramco announced its first global investment in liquefied natural gas (LNG) on Thursday, as the wealthy Gulf monarchy seeks to expand its activities beyond oil.
Aramco, the flagship of the Saudi economy, will acquire a minority stake worth $500 million in MidOcean Energy, managed by the American investment company EIG, the oil company reported Thursday in a press release.
“We expect strong growth in demand for LNG as the world continues its energy transition, with gas being a critical fuel and raw material in various industries,” Aramco CEO Amin Nasser said in the statement.
Diversification
“Gas will play an important role in meeting the world’s growing needs for secure, affordable and more sustainable energy,” he said, welcoming this “Aramco’s first international investment in LNG.”
The Saudi state, the world’s leading crude oil exporter, owns 90% of Aramco’s shares and relies heavily on its revenue to finance Vision 2030, the vast economic reform program led by Crown Prince Mohammed bin Salman.
The goal of the de facto leader of the main Arab economy is to diversify investments to reduce the kingdom’s dependence on oil and fossil fuels.
MidOcean Energy “is in the process of acquiring interests in four Australian LNG projects, with a growth strategy aimed at creating a diversified global LNG business,” according to the Aramco statement.
The company posted record profits of $161.1 billion last year, helping the kingdom post its first annual budget surplus in almost a decade, although performance fell in the first two quarters of 2023 compared with the same period in 2022. .
Source: BFM TV
