Saudi Aramco enters the global liquefied natural gas (LNG) business by signing an agreement to acquire a minority stake in MidOcean Energy.

Saudi Aramco has signed definitive agreements to acquire a strategic minority stake in MidOcean Energy for $100 billion, which is the company’s first international investment in LNG.

MidOcean Energy is founded and managed by EIG, an institutional investor in the global energy and infrastructure sectors. In 2021, Aramco had signed an agreement with this company to sell a 49% stake of Aramco Oil Pipelines.

The stake purchase agreement includes an option that allows Aramco to increase its stakeholding and related rights in MidOcean Energy in the future. Aramco announced that this agreement includes final conditions including regulatory approvals.

This Saudi petroleum giant, the world’s largest petroleum exporter, has been looking to enter the gas and LNG business for months, and earlier this year was rumored to be in talks with developers to buy a stake in a project in the US or Asia.

Considering the growing demand for LNG in the coming years and increasing LNG imports to Europe to eliminate the use of Russian gas, entering the LNG business is another lucrative business for Aramco.

According to the Oil Price report, Blair Thomas, Chairman and CEO of EIG said: “MidOcean Energy’s initial focus is on the LNG deals in Australia, but the company believes the opportunity set is global”.