The energy giant Saudi Aramco on Thursday launched its first international investment in liquefied natural gas as part of a larger effort to diversify its business beyond oil.
Saudi Aramco announces LNG deal: The corporation, considered the crown jewel of the Saudi economy, announced its plan to invest $500 million in a minority stake in MidOcean Energy, a US investment company.
“We anticipate strong demand-led growth for LNG as the world continues its energy transition journey, with gas being a vital fuel and feedstock in various industries,” Aramco CEO Amin Nasser said in a statement.
“We think gas will be crucial in supplying the world’s growing demand for safe, dependable, and environmentally friendly energy.”
He stated that the agreement “marks Aramco’s first international investment in LNG”.
Saudi Arabia, the world’s largest exporter of crude oil, owns 90 percent of Aramco’s shares, and its ambitious Vision 2030 project, led by Crown Prince Mohammed bin Salman, relies on its income to transition the country away from fossil fuels.
Nasir K. al-Naimi, the company’s upstream president, stated in a statement on Thursday that Aramco intends to become “a leading global LNG player” and that it sees “significant opportunities in this market, which is position for structural, long-term growth.”
However, With a growth strategy to build a diverse global LNG business, MidOcean Energy “is currently in the process of acquiring interests in four Australian LNG projects,” according to the statement.
Although year-over-year performance declined during the first two quarters of 2023, Aramco posted record profits totaling $161.1 billion last year, enabling the kingdom to record its first annual budget surplus in nearly a decade.
Further, By 2050, Aramco promises to have “operationally net-zero” carbon emissions.
However, it does not apply to the CO2 produced when customers burn Saudi oil in their automobiles, power plants, or furnaces, which is indirectly generate by Aramco’s industrial sites.