Saudi Aramco is understood to be in talks with Sempra about taking a stake in Port Arthur LNG Phase-2, while looking at opportunities in China where CEO Amin Nasser sees “healthy and growing demand.” Aramco just raised its gas production target by 60 percent through 2030 and strives to expand its foothold in LNG, potentially together with MidOcean Energy.
CEO Amin Nasser confirmed Aramco is keen to invest in US LNG ventures, though he fell short on giving any details. In this context, Aramco is using its strategic minority stake in EIG-affiliate MidOcean Energy to convince the company to jointly invest in LNG projects outside Australia, preferably in North America.
"We are in discussion with a number of companies and partners in the US and other parts of the world because natural gas is a growth market. Very significant. We're looking at it for growth opportunity to expand our position in LNG,” the Aramco CEO disclosed in a media call.
Though construction advances on Sempra’s Port Arthur Phase 1 and first cargo deliveries are expected in 2027 – the proposed expansion is directly affected by the Biden-administration’s move to suspend pending decisions on LNG exports to countries that the US does not have a Free Trade Agreement with (non-FTA). The proposed Trains 3 and 4, capable of producing up to 13.5 mtpa, would take Port Arthur’s total liquefaction capacity to 26 mtpa. Sempra filed for DOE approval already in September last year – though that process could now take more than a year to complete.
Other LNG export ventures without such issues may better suit Aramco in its efforts to cater to fast-growing gas markets in China, India and Southeast Asia. Apart from Port Arthur, Sempra also operates the Cameron LNG export plant in Louisiana and seeks to advance Costa Azul LNG conversion on the Pacific Coast of Mexico. To evaluate all options, talks are also being held with rival project developers.
