DUBAI/NEW YORK (Reuters) – Saudi Aramco signed a 20-year agreement to buy liquefied natural gas (LNG) from a forthcoming export terminal in Texas that U.S.-based Sempra Energy is developing, the two companies said on Wednesday. The Saudi state oil giant plans to become a major global gas player, and this deal will provide it with access to some of the world’s cheapest and most abundant natural gas via the U.S. shale boom. Aramco has been developing its own gas resources and eyeing gas assets in the United States, Russia, Australia and Africa. Demand for super-cooled LNG hit a record in 2018 at 42.1 billion cubic feet per day (bcfd), according to the International Gas Union, and growth is expected to keep rising as countries wean themselves off dirtier coal. One billion cubic feet of gas is enough to supply about 5 million U.S. homes for a day. The sale-and-purchase agreement is for 5 million tonnes per annum (MTPA) of LNG, equivalent to about 0.7 bcfd of natural gas. This is Saudi Arabia’s first known non-binding agreement to buy LNG, and the largest such LNG deal since 2013, according to energy consultancy Wood Mackenzie. Aramco will also buy a 25% equity… continue reading
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