Saudi Aramco enters LNG industry, acquiring MidOcean Energy
Opening itself to the liquefied natural gas (LNG) industry, Saudi Aramco - a leading integrated energy and chemicals company - has signed a definitive agreement to acquire a strategic minority stake in MidOcean Energy for US$500 million.
Who is MidOcean Energy?
Founded in 2022, MidOcean Energy is an LNG company, formed by EIG - a leading institutional investor to the global energy sector since 1982. MidOcean Energy was built to provide a diverse, resilient, cost and carbon-competitive LNG portfolio.
Currently, in the process of acquiring interests in four Australian LNG projects, MidOcean Energy has a growth strategy to create a diversified global LNG business.
What does the new agreement mean for both MidOcean Energy and Saudi Aramco?
The strategic partnership between MidOcean Energy and Saudi Aramco marks a first for the integrated energy and chemicals company, investing in LNG.
“We are pleased to be strengthening our strategic partnership with EIG through this acquisition, which marks Aramco’s first international investment in LNG. 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. We believe that gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy,” commented Amin H. Nasser, President & CEO, Saudi Aramco.
“This is an important step in Aramco’s strategy to become a leading global LNG player. We see significant opportunities in this market, which is positioned for structural, long-term growth,” added Nasir K. Al-Naimi, Upstream President, Saudi Aramco.
The agreement builds on the relationship between Saudi Aramco and EIG, where EIG was part of a consortium that acquired a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Saudi Aramco.
Saudi Aramco also has the option to increase its shareholding and associated rights in MidOcean Energy in the future.
“It is an honor for MidOcean Energy to have Aramco as a key shareholder and strategic partner. We share the conviction that LNG is an integral enabler of the global energy transition, and we believe that the global LNG industry has strong fundamentals for many decades to come. Synergistic partnerships are core to how MidOcean Energy will do business, grow and thrive. In Aramco, we have a partner that has long-term thinking in its DNA and an unwavering commitment to enduring collaborations. We look forward to pursuing many new opportunities together,” concluded De la Rey Venter, CEO, MidOcean Energy.
******
For more business insights, check out the latest edition of Business Chief Middle East & Africa and be sure to follow us on LinkedIn and Twitter.
You may also be interested in the Business Chief US & Canada website.
BizClik is a global provider of B2B digital media platforms that cover executive communities for CEOs, CFOs and CMOs, as well as leaders in Sustainability, Procurement & Supply Chain, Technology & AI, Cyber, FinTech & InsurTech. We also cover industries including Manufacturing, Mining, Energy, EV, Construction, Healthcare and Food & Drink.
BizClik, based in London, Dubai and New York, offers services such as content creation, advertising and sponsorship solutions, webinars and events.
