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

Oil giant Aramco is in talks with U.S. firms Tellurian and NextDecade on two separate 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 boomed over the past years with oil majors and Aramco's rivals such as Qatar's QE contending to develop a number of projects to export gas to Europe and Asia.

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

Aramco authorities checked out the website three times last month -. consisting of together with executives from Australia's Woodside on. among those events, said the sources who decreased to be. identified as talks are not public.

Aramco is also 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. talk about market speculation. Woodside stated it constantly. examines natural and inorganic growth chances however decreased. further remark. NextDecade did not right away react to. request for remark.

Aramco is seeking to reinforce its position in the LNG. market, which is set to grow by 50% by 2030, specifically in the. United States, where LNG capacity is set to practically double over. the next four years.

Tellurian has actually spent years and hundreds of countless. dollars on attempting to finance and develop the Driftwood plant.

Last fall, Tellurian alerted investors that continued losses. and decreasing money reserves might not be enough within a year to. cover operating and financial obligation expenses.

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

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

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

In March, reported that Aramco was in talks to. purchase Sempra Facilities's Port Arthur project in Texas.

It is also competing with Shell to buy the possessions. of Temasek-owned LNG trading company Structure Energy.