Aramco signs deal with EIG to enter global LNG business

Aramco has signed on to its first international investment in LNG though an agreement to acquire a minority stake in MidOcean Energy, an LNG company formed and managed by EIG, for $500 million.

Aramco will hold the option to increase its shareholding and associated rights in MidOcean Energy in the future, but further details were not disclosed.

MidOcean Energy is in the process of acquiring interests in four Australian LNG projects from Tokyo Gas Co. Ltd. (OGJ Online, Oct. 10, 2022). The interests include 5% of Pluto LNG (operated by Woodside Energy Group Ltd.), 2.5% of Train 2 in Queensland Curtis LNG (operated by Shell PLC), 1.575% of Ichthys LNG (operated by Inpex Corp.), and 1% of Gorgon LNG (operated by Chevron Corp). Those deals, valued at $2.15 billion, were originally expected to close in this year’s first half subject to customary Australian regulatory approvals and preemption rights of other members of the LNG joint ventures.

Completion of Aramco’s deal with MidOcean Energy is also subject to closing conditions, which include regulatory approvals. No timeframe was given.

Aramco president and chief executive officer Amin H. Nasser said the company anticipates strong demand-led growth for LNG “as the world continues on its energy transition journey, with gas being a vital fuel and feedstock in various industries.”