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Saudi Aramco holding LNG talks with US companies Tellurian, NextDecade, sources say

Oil huge Aramco is in talks with U.S. firms Tellurian and NextDecade on 2 separate melted gas (LNG) projects as the Saudi firm seeks to improve its gas trading and production, 3 sources near to the talks told .

U.S. gas production has grown over the previous years with oil majors and Aramco's rivals such as Qatar Energy completing to construct numerous jobs to export gas to Europe and Asia.

The state energy firm remains in talks with Tellurian to buy a stake in its 27.6 million metric lot per annum (mtpa). Driftwood LNG plant near Lake Charles, Louisiana.

Aramco authorities visited the site three times this year -. including together with executives from Australia's Woodside on. one of those occasions, stated the sources who declined to be. identified as talks are not public.

Aramco is likewise in talks with U.S. LNG firm NextDecade. for a long-lasting gas purchase arrangement from a proposed. fifth processing unit at its $18 billion Rio Grande facility.

Aramco decreased to comment. Tellurian said it does not. talk about market speculation. Woodside stated it constantly. assesses natural and inorganic development chances but decreased. additional remark. NextDecade did not instantly respond to. ' request for comment.

Aramco is looking for to reinforce its position in the LNG. market, which is set to grow internationally by 50% by 2030, particularly. in the United States, where LNG capability is set to practically double. over the next four years.

Tellurian has spent years and numerous countless. dollars trying to finance and construct the Driftwood plant.

Last fall, Tellurian warned investors that within a year the. business might not have the ability to cover operating and financial obligation expenses due. to ongoing losses and diminishing money reserves.

An Aramco investment could offer the turnaround that. Driftwood LNG requires, stated Kaushal Ramesh, Rystad Energy's vice. president for LNG research.

Driftwood is not impacted by President Biden's time out on LNG. export tasks as it currently has a Department of Energy license. to export the proposed plant's super-chilled gas to countries. that do not have free-trade contracts with the U.S.

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

Aramco is among the world's biggest oil manufacturers and the. top exporter, pumping nearly 10% of the world's crude supply.

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

Aramco made its very first LNG financial investment abroad when it bought a. stake in U.S.-based MidOcean Energy for $500 million in 2015.

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

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