Saudi Aramco traded its first liquefied natural gas (LNG) cargo in March and said it is seeking gas resources in the US, Russia and Australia.
Wednesday 22, May 2019 BY MUZORIWA KUDAKWASHE
Saudi Aramco has signed an initial LNG sale and purchase agreement with Sempra Energy and also plans to take a stake in the project.
The state-owned oil giant stated that the agreement anticipates the negotiation and finalization of a definitive 20-year LNG sale-and-purchase agreement for five million tonnes per annum of LNG offtake from Phase 1 of the Port Arthur LNG export-project under development.
Additionally, the agreement also includes the negotiation and finalization of a 25 per cent equity investment in Phase 1 of Port Arthur LNG.
Amin Nasser, the President and CEO of Saudi Aramco, said, “The agreement with Sempra LNG is a major step forward in the company’s long term strategy to become a leading global LNG player.”
The deal, if completed, would be the first long-term LNG purchase by Saudi Arabia’s state oil giant, giving the company access to gas that it can ship home for use in power plants or trade on global markets.
“With global demand for LNG expected to grow by around four per cent a year and likely to exceed 500 million metric tons a year by 2035, we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG,” Nasser said.