Aramco, ADNOC looking to invest in US LNG: report

PORT ARTHUR, March 6, 2024 – Saudi Arabia’s Aramco and Abu Dhabi’s ADNOC are in talks on investing in LNG projects in the USA, Reuters reported on Wednesday.

Aramco is eyeing an investment in phase two of the Port Arthur LNG project in Texas. The project’s USD 13-billion initial phase of construction is underway, and its planned capacity is 13.5 million tpy.

Meanwhile, ADNOC may support a planned fourth processing unit in the state’s USD 15-billion Rio Grande LNG export facility, which has an anticipated capacity of 28 million tpy.

Sources cited by Reuters said the NOCs are aiming to step up their competition in the growing LNG market, particularly with Qatar.

Last month, QatarEnergy announced plans to expand production in its North Field, the world’s largest known gas reservoir, and increase the country’s LNG production capacity by at least 16 million tpy. The move is in addition to a 49-million-tpy expansion project already underway.

Earlier this year, Shell forecasted a rise of 50% in LNG demand by 2040, saying the increase was expected particularly in Asia, where populations and economies are growing and coal-to-gas switchovers are taking place.

The USA became the world’s top exporter of LNG in 2023, edging out Qatar.

Image courtesy of Rio Grande LNG.

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