By Faiza Rizvi Rahman
Our gas offering grows with a new strategic partnership focused on exploring new opportunities in Liquefied Natural Gas.
Aramco recognizes that meeting the world’s growing energy needs without compromising energy security, and reliability, is more essential today than ever before.
Liquefied Natural Gas (LNG), which is natural gas in liquid form, offers a lower-carbon emission energy source than coal and fuel oil, which still make up the majority of the world’s energy supply. When natural gas is chilled and liquefied into LNG it can be shipped worldwide, and thanks to this logistical advantage the LNG market has seen remarkable growth, with trade volumes increasing from 100 million tonnes in 2000 to nearly 400 million tonnes in 2022.
A Transition Fuel
For decades, we’ve harnessed the potential natural gas holds as both a source of energy to use in power generation and as a feedstock for domestic industry. Now, as we anticipate strong demand-led growth for LNG as the world continues on its path toward a lower-carbon energy economy, we are undertaking a journey to become a global player in LNG.
“We believe that LNG can be an important transition fuel that could enable global energy and industrial systems to balance reducing greenhouse gas (GHG) emissions and energy security.”
— Nasir K. Al Naimi, Aramco president of Upstream
“LNG shows potential as a suitable fuel for the energy transition, particularly in Asian economies that are heavily reliant on coal. Coal to LNG substitution could deliver meaningful reduction in CO2 emissions,” Al Naimi adds.
A Leading LNG Player
We’ve now entered the global LNG business by acquiring a stake in MidOcean Energy, an LNG company formed and managed by US investment firm EIG. The agreement builds on the relationship between Aramco and EIG, which was part of a consortium that acquired a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, in 2021.
“The LNG market is positioned for structural, long-term growth, and MidOcean Energy is well equipped to capitalize on rising LNG demand, particularly in Asia and Europe, where LNG import infrastructure continues to expand,” Al-Naimi explains.
“We will continue to explore a range of domestic and international opportunities in key LNG geographical nodes to optimize potential trading synergies and meet the world’s rising need for secure, accessible, and more-sustainable energy,” he adds.
Our Gas Success Story
Our gas business has long been a priority, one that’s set to gain even more prominence as we develop newly discovered unconventional gas resources such as our Jafurah field. This additional gas production capacity is expected to help meet a growing domestic demand for lower-cost, lower-carbon energy, and is expected to help lower GHG emissions in domestic power generation by mitigating the burning of liquid fuels.
Our gas production yields Natural Gas Liquids (NGLs), ethane, and condensate, which supplement our crude oil production, and provide feedstock to the refining and petrochemical industries, both in Saudi Arabia and internationally.
The latest addition to the Master Gas System in Fadhil which was inaugurated in 2020.
In 1975, we began to develop our Master Gas System (MGS), an extensive network of pipelines that connects gas production and processing sites throughout the Kingdom. It has been the backbone of Saudi Arabia’s industrial network for economic development and diversification since its inception more than four decades ago.
Now, by expanding our presence in new international markets via LNG, we have the opportunity to continue this successful journey and help meet the growing demand for this transition fuel from existing and prospective Aramco customers worldwide.
— The Arabian Sun: October 19, 2023