Saudi Aramco explores global LNG opportunities: Nasser

Saudi Aramco's President and CEO Amin Nasser said the company is working on a number of international investments and exploring global opportunities in the field of LNG.

He added that the company has ambitious plans to develop its portfolio and expand its capabilities in this field.

Nasser said in an investor call that the oil giant seeks to complete a strategic partnership in the field of LNG with MidOcean Energy during the third quarter of 2024.

Aramco also aims to expand its gas operations by over 60% by 2030 to meet the Kingdom's needs, especially amid the growth seen in this industry.

Additionally, the company is keen on exporting blue hydrogen and is working to achieve its goal of producing 11 million tons annually of blue ammonia, which is equivalent to 1.8 million tons annually of blue hydrogen by 2030.

The oil major is looking into several investments in China, which will be announced in due time this year or the next, Nasser said. He noted that South Korea and India are potential investment destinations for the company.

Further, the top executive went to say that Aramco aims to be a key player in the field of blue hydrogen and blue ammonia, seeing significant potential in global energy while facing many challenges, including the high costs of production and transportation.

The company expects a number of tenders from Japan, followed by South Korea, which will determine how the market develops.

The decline in refining margins that occurred during the second quarter of 2024 is considered short-term, and the margins will likely be healthy in the coming quarters, Nasser said, indicating that the company focuses on this field.

Most of the additional refining capacities will come from the Middle East, as there are significant refining investments in the region aiming to convert liquids into chemicals by 60% or more, the CEO said. He added that this is something the company has previously done in China and is keen to pursue in its upcoming investments.

Further, Nasser said 40% of chemical consumption comes from China, which is a major market due to its need for carbon fiber chemicals to use them in solar panels and other important products in energy transition.

He added that there is significant growth and transformation in building refineries that convert liquids into chemicals, with capacities ranging between 50-70%.

Regarding the company's activities in the drilling sector, the CEO said the number of rigs is on the rise, increasing from 220 in 2021 and is expected to reach 300 by the end of this year.

The expansion in gas drilling rigs is driven by growth in the gas sector, both conventional and unconventional, particularly through Al-Jafurah.

Touching on the reduction of oil rigs, Nasser said this was a result of lowering the maximum production capacity of oil from 13 million barrels per day (bpd) to 12 million bpd.