Saudi Aramco enters the global LNG market

RIYADH, September 28, 2023 – Saudi Aramco has agreed to acquire a minority stake in LNG player MidOcean Energy for USD 500 million, Saudi Arabia’s NOC announced on Thursday.

The deal includes an option to increase Saudi Aramco’s stake in the LNG player in the future and is subject to closing conditions and regulatory approvals.

MidOcean Energy is owned by US investment entity EIG Partners.

In 2021, EIG Partners bought a 49% stake in Saudi Aramco’s pipeline subsidiary Aramco Oil Pipeline Company that earned the NOC USD 12.4 billion.

“We are pleased to be strengthening our strategic partnership with EIG through this acquisition, which marks Aramco’s first international investment in LNG,” said Amin H. Nasser, president and CEO of Saudi Aramco.

“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.”

In October 2022, MidOcean Energy agreed with Tokyo Gas Company to acquire their shares in four LNG projects in Australia for USD 10.2 billion.

Exact percentage of shares involved in Saudi Aramco’s purchase were not disclosed.