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Saudi Aramco holding LNG talks with United States firms Tellurian, NextDecade, sources say

Oil giant Aramco is in talks with U.S. firms Tellurian and NextDecade on 2 separate melted gas (LNG) projects as the Saudi company looks for to improve its gas trading and production, 3 sources near the talks informed .

U.S. gas production has actually boomed over the past decade with oil majors and Aramco's rivals such as Qatar Energy competing to build several tasks to export gas to Europe and Asia.

The state energy firm is in talks with Tellurian to purchase a stake in its 27.6 million metric ton per year (mtpa). Driftwood LNG plant near Lake Charles, Louisiana.

Aramco officials checked out the site 3 times this year -. including together with executives from Australia's Woodside on. among those events, stated the sources who decreased to be. determined as talks are not public.

Aramco is likewise in talks with U.S. LNG firm NextDecade. for a long-term gas purchase contract from a proposed. 5th processing system at its $18 billion Rio Grande facility.

Aramco declined to comment. Tellurian said it does not. discuss market speculation. Woodside said it continuously. examines natural and inorganic growth chances but declined. more comment. NextDecade did not instantly respond to. ' request for remark.

Aramco is looking for to enhance its position in the LNG. market, which is set to grow worldwide by 50% by 2030, especially. in the United States, where LNG capacity is set to nearly double. over the next four years.

Tellurian has actually invested years and numerous countless. dollars attempting to fund and build the Driftwood plant.

Last fall, Tellurian alerted investors that within a year the. company might not be able to cover operating and financial obligation costs due. to continued losses and decreasing money reserves.

An Aramco investment could supply the turnaround that. Driftwood LNG needs, said Kaushal Ramesh, Rystad Energy's vice. president for LNG research study.

Driftwood is not affected by President Biden's pause on LNG. export jobs as it already has a Department of Energy license. to export the proposed plant's super-chilled gas to countries. that do not have free-trade agreements with the U.S.

. In February, the U.S. Federal Energy Regulatory Commission. gave Tellurian a three-year authorization extension to complete. building and construction of Driftwood.

Aramco is one of the world's largest oil producers and the. top exporter, pumping almost 10% of the world's crude supply.

Nevertheless, its existence in the LNG market is dwarfed by. neighbouring Qatar. UAE's ADNOC likewise has a bigger. existence.

Aramco made its first LNG financial investment abroad when it bought a. stake in U.S.-based MidOcean Energy for $500 million last year.

In March, reported that Aramco was in talks to. invest in Sempra Infrastructure's Port Arthur task in Texas.

It is also taking on Shell to purchase the properties. of Temasek-owned LNG trading firm Structure Energy.