SAUDI Aramco today announced its first global investment in liquefied natural gas (LNG), part of a broader bid by the energy giant to expand beyond oil.

The company, seen as the jewel of the Saudi economy, said it would acquire a minority stake worth US$500 million (RM2.3 billion) in MidOcean Energy, which is managed by United States investment firm EIG.

“We anticipate 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,” Aramco CEO Amin Nasser said in a statement.

“We believe gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy.”

He said the deal “marks Aramco’s first international investment in LNG”.

Saudi Arabia, the world’s biggest crude oil exporter, owns 90% of Aramco’s shares and was depending on its revenue for Crown Prince Mohammed bin Salman’s sweeping economic and social reform programme, known as Vision 2030, which aimed to shift the economy away from fossil fuels.

Aramco aimed to become “a leading global LNG player”, the firm’s upstream president Nasir K. al-Naimi said in today’s statement, adding that it saw “significant opportunities in this market, which is positioned for structural, long-term growth”.

MidOcean Energy was “in the process of acquiring interests in four Australian LNG projects, with a growth strategy to create a diversified global LNG business”, the statement said.

Aramco reported record profits totalling US$161.1 billion last year, allowing the kingdom to notch up its first annual budget surplus in nearly a decade, though year-on-year performance fell during the first two quarters this year.

Aramco has pledged to achieve “operational net-zero” carbon emissions by 2050.

That applied to emissions produced directly by Aramco’s industrial sites, but not the carbon dioxide produced when clients burn Saudi oil in their cars, power plants and furnaces. – AFP, September 28, 2023.