Saudi Aramco, world’s largest oil and gas company by revenue, tries its hands at business of international natural gas by selling its first LNG cargo shipment from Singapore. The deal was taken care of by the company’s trading subsidiary, Aramco Trading. CEO of the company, Amin Nasser was unwilling to disclose more details of the trade.
“There is a lot of potential to grow in gas ... We are currently in discussion with a lot of partners around the world for growing our international gas position,” Nasser said.
Aramco is looking for investments in natural gas in Russia, Australia and Africa according to Khalid al-Falih, Saudi’s energy minister.
In an effort to diversify Saudi Arabia’s oil-dependent economy, state-owned Saudi Aramco opened its initial public offering three years ago. The IPO allows international investors to own shares of the company. This would open Saudi Arabia’s economy for foreign investors.
Aramco also expects to play a larger role in the international arena. The company’s plans of expansion include going beyond the traditional business of pumping and selling crude oil, investing in petrochemical refineries across the globe, and are looking for potential joint-ventures.
The company’s JV agreement with Chinese conglomerate Norinco, on 22 February, to develop a refining and petrochemical complex in China, worth $10 billion is just the beginning of Saudi Arabia’s ambitious plans.
The company is also in “serious discussions” with Indian owned Reliance Industries Ltd to acquire up to 25% of its stakes in refining and petrochemical business. The companies are expected to reach at an agreement by June, as reported by the media.
Circumstances prove propitious for Saudi oil business at present. The recent decision of Trump administration to end waivers on import of Iranian oil might benefit Saudi’s oil business in a large way. It is predicted that Saudi will be compelled to increase its oil production to numbers not seen since the late 1960s, in order to fulfil market demands.
