Aramco In Discussions With Tellurian And NextDecade On LNG Projects: Report

Zinger Key Points
  • Aramco is in discussions with Tellurian to acquire a stake in its Driftwood LNG plant in Louisiana.
  • Aramco is also negotiating a long-term gas purchase from NextDecade's proposed fifth unit at the Rio Grande facility.

Saudi oil giant Saudi Aramco is reportedly in discussions with Tellurian Inc. TELL and NextDecade Corporation NEXT regarding two separate liquefied natural gas (LNG) projects.

In particular, Aramco is reportedly in talks with Tellurian to acquire a stake in its 27.6 million metric ton per annum (mtpa) Driftwood LNG plant near Lake Charles in Louisiana, reported Reuters.

Also, the Saudi company is negotiating with NextDecade for a long-term gas purchase agreement from a proposed fifth processing unit at its $18 billion Rio Grande facility.

With these deals, Aramco aims to bolster its position in the LNG market, which is projected to grow by 50% globally by 2030, particularly in the U.S., where LNG capacity is expected to double over the next four years.

As per the report, over the past decade, U.S. gas production has surged, with oil majors and Aramco’s rivals, such as Qatar Energy, competing to develop multiple projects to export gas to Europe and Asia.

This month, in a strategic move to attract global investors, Aramco launched a worldwide roadshow to promote its $12 billion share sale, marking a departure from its previous IPO approach.

Price Action: TELL shares are up 11.2% at $0.6391, while NEXT is down 1.44% at $7.865 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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