Latest news with #AminNasser
Economy ME
3 days ago
- Business
- Economy ME
UAE, Saudi Arabia venture into the U.S. LNG space
Of the more than $3 trillion in investments pledged by GCC leaders during U.S. president Donald Trump's regional tour, U.S. LNG emerged as a top strategic target. This was underscored by Saudi Aramco president and CEO Amin Nasser during the Saudi-U.S. Investment Forum in Riyadh where he said: 'We are looking at expanding in LNG, and the U.S. is really a good place to put our investment.' Some of the investments were already committed before Trump's visit but Saudi Aramco is looking for further opportunities to grow its LNG portfolio. QatarEnergy was an early mover into the U.S. LNG space, converting its Golden Pass LNG import terminal to an export facility in 2014. With commissioning expected by the end of 2025, and the first cargo to be shipped in the first quarter of 2026, the 18 million mt/year terminal will become the largest single-phase LNG export facility in the U.S. QatarEnergy Trading will market its 70 percent stake, making it the third-largest buyer of U.S. LNG. Yet despite its early lead, QatarEnergy has opted not to expand further in the U.S., the world's leading LNG exporter. Qatar is instead prioritizing its domestic expansion plans that will nearly double LNG capacity to 142 million mt/year by 2030. Combined with its stake in Golden Pass, QatarEnergy's total gross LNG output will amount to nearly 160 million mt/year, putting it firmly in second place after the U.S. and ahead of Australia. QatarEnergy was an early mover into the U.S. LNG space Read: UAE and Kuwait enhance partnerships in AI, energy, transportation through strategic MoUs Growing LNG footprint in the U.S. While QatarEnergy is focusing on domestic expansion, Abu Dhabi's ADNOC and its subsidiaries are aggressively growing their U.S. LNG footprint. ADNOC's international arm, XRG, acquired an 11.7 percent stake in the $14.8 billion Rio Grande LNG project in Texas and signed a 1.9 million mt/year offtake deal for a future train. It also holds options for further equity expansion. Meanwhile, Mubadala Energy recently took a 24.1 percent stake in SoTex, which plans to build the 9.3million t/year Commonwealth LNG terminal in Louisiana. The UAE was the first Gulf Arab state to export LNG , with the first cargo shipped from Das Island in 1977. However, with capacity of up to 6 million mt/year, ADNOC is a minnow when compared with QatarEnergy. Even when the 9.6 million mt/year Ruwais LNG project comes online in 2028, total capacity will remain less than 16 million mt/year. Aramco, the newest Gulf entrant in LNG, began building its portfolio through a 49 percent stake in MidOcean Energy, which holds assets in Australia and Peru. MidOcean is pursuing a 30 percent stake in the planned 16.45 million mt/year Lake Charles LNG project. Aramco itself has signed a sale and purchase agreement for 1.2 million mt/year from Rio Grande Train 4 and is eyeing equity in two more U.S. projects: A 25 percent stake and 5 million mt/year offtake from Sempra's Port Arthur Phase 2, and a potential role in Woodside's 16.5 million mt/year Louisiana LNG project, which reached FID in April. Nasser said Saudi Aramco aims to secure 7.5 million mt/year of U.S. LNG offtake by 2030. Qatar is prioritizing its domestic expansion plans that will nearly double LNG capacity to 142 million mt/year by 2030 Clean energy transition The focus on gas and LNG, both domestic and international, is borne out by data showing robust demand for the cleaner of the fossil fuels in coming decades. Shell, in its LNG Outlook 2025 released in February, raised its forecast for 2040 global LNG demand to 630-718 million tons, at its midpoint, an increase of over 60 percent from the 2024 forecast of 407 million tons. With demand growth likely to lag supply capacity additions from 2026 through to at least the end of the decade, most analysts expect a period of sustained low prices. However, lower prices should spur a new wave of import projects, locking in demand for decades. Of this new demand, some 16 million mt/year will be from LNG-powered shipping, a 60 percent hike versus last year's forecast of 2030 demand, and four times 2024 demand of just over 4 million mt. In terms of the top global supplier, 'The USA is set to extend its lead as the world's largest LNG exporter, potentially reaching 180mn t/y by 2030 and accounting for a third of global supply,' the report said. Trump has been pressing the European Union to buy more U.S. LNG and there has been an increase in U.S. LNG imports into Europe, replacing Russian gas. U.S. LNG exporters can expect to grow their share of the European market in the second half of the decade after a new EU directive comes into effect. The EU plans to end all imports of Russian gas by the end of 2027, including both pipeline gas and LNG, as part of its REPowerEU initiative. Abu Dhabi's ADNOC and its subsidiaries are aggressively growing their U.S. LNG footprint Eyes on Asia as the bigger prize For the Middle Eastern exporters, the focus is on Asia, the biggest growth market for both oil and gas. QatarEnergy deputy chairman, president, and CEO Saad Sherida Al Kaabi has said that he does not see the growth in U.S. LNG capacity as a challenge. 'I think U.S. volumes are going to go to certain markets that are mostly in Europe and South America, and our volumes will predominately be serving Asia,' he said at the Qatar Economic Forum on May 20. Qatari exports to Europe have fallen in recent years as U.S. exports to the continent have swelled. Qatar, meanwhile, has deepened its relationship with China, with Beijing emerging as the largest buyer of Qatari LNG and a major partner through long-term supply deals. The UAE's ADNOC, which recently opened offices in Beijing, has also started marketing LNG from Ruwais. It signed a contract with Chinese private-sector energy distribution firm ENN Natural Gas for 1 million mt/year for 15 years from 2028, finalizing a preliminary agreement reached in 2023. Another sales deal was with state firm Zhenhua Oil for a reported 800,000 mt/year from 2026. While Zhenhua is a new entrant into the LNG sector, it is an established partner of ADNOC, having acquired a 4 percent stake in the 2 million b/dADNOC Onshore concession in 2018. While Qatar remains the region's LNG heavyweight, the UAE and Saudi Arabia are positioning themselves to become global players by tapping into the growing U.S. LNG sector. For more op-eds, click here
Saudi Gazette
4 days ago
- Business
- Saudi Gazette
Aramco Chief: Global energy security is threatened amid escalating tensions
Saudi Gazette report RIYADH — Saudi Aramco President and CEO Amin Nasser emphasized on Monday that the importance of oil and gas cannot be underestimated, especially during times of conflict. "We are witnessing this now, as threats to energy security continue to cause global concern. This fact is clearly evident in the current global situation," he said while underlining the need to adopt a more realistic and pragmatic approach to the global energy transition. Nasser made the remarks in his speech delivered on Monday via video conference at the Energy Asia 2025 Conference. Kuala Lumpur is hosting the three-day conference with the theme of "Delivering Asia's energy transition." The conference focuses on driving a fair and sustainable energy transition in Asia, addressing issues of energy security and climate action. The Aramco chief emphasized that historical facts have demonstrated the importance of crude oil and gas in times of conflict. "History tells us that new energy sources do not replace traditional sources, but rather add to the energy mix," he said. Nasser stated that the transition plan had been overestimated and under-implemented in large parts of the world, particularly in Asia. "Some believed the transition would be quick and straightforward, ending with the deplete of traditional energy sources. However, oil demand continues to exceed 100 million barrels per day, with no sign of a decline," he said. The Aramco chief emphasized that the challenges posed by reality have revealed profound technical, economic, political, and social flaws in the popular narrative surrounding the energy transition. "On the one hand, this transition is extremely costly as the cost of achieving net-zero emissions could reach $200 trillion. On the other hand, reality proves that renewable energy sources, despite their importance and growth, have not reached a sufficient level of reliability to bear the existing burdens and risks," he a result, Nasser emphasized, achieving energy security and affordable access are essential requirements, along with sustainability, as central goals of the transformation process. "Realism and pragmatism are beginning to replace idealism. This is a good thing, especially for Asia," he noted that Asia, the world's largest energy-consuming region, accounts for nearly half of global demand. "Without attention to Asia's needs and resources, the transition will not have a real impact, as we recognize the Asian continent's need for diverse energy sources that no single source can meet," he Aramco chief pointed out that wind, solar, and electric vehicles do not meet current or future demand needs. He emphasized that crude oil and gas will remain a key part of the energy mix. "The long-term goal is not to abandon traditional energy, but rather to improve it, while expanding at a realistic pace into new solutions. Each country must have a flexible, tailored energy strategy to implement it," he stressed that countries must cooperate more than ever in this respect. "Governments, the energy sector, and innovators need to extend cooperation each according to their role in the field of new and traditional energy sources," he added.
Zawya
4 days ago
- Business
- Zawya
Aramco CEO says reaching net-zero may cost $200 trillion
The transition to renewables is incredibly expensive and reaching net zero could cost up to $200 trillion, according to Saudi Aramco President & CEO Amin H. Nasser. 'Reality has revealed a transition plan that's been oversold and under-delivered for large parts of the world, especially Asia,' he said in a video address to Energy Asia 2025 in Kuala Lumpur. 'We were told it would be rapid, painless, and inevitably mean the collapse of conventional energy. Yet oil demand still exceeds 100 million barrels per day, with no sign of collapsing. Why?' he said. Public doubts are growing as fairytale fantasies meet reality on the ground, Nasser said, adding renewables, while important and growing, are far from ready to shoulder the burden intended and the risk that exists. (Editing by Anoop Menon) (
Reuters
4 days ago
- Business
- Reuters
Conflict in Middle East shadows oil industry gathering in Malaysia
KUALA LUMPUR, June 16 (Reuters) - Global energy executives gathered in the Malaysian capital on Monday for an industry conference with an eye on the dramatic escalation in the conflict between Israel and Iran, which has fuelled worries that it could widen and disrupt supply. The head of Saudi state oil giant Aramco ( opens new tab said conflict underscores the importance of oil and gas. "(History has) shown us that when conflicts occur, the importance of oil and gas can't be understated," Chief Executive Amin Nasser told delegates by videolink. "We are witnessing this in real time, with threats to energy security continuing to cause global concern," he said, without directly mentioning the fighting between Israel and Iran. Israel launched strikes on Friday against Iran, including on its nuclear power facilities, that it said aimed to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend, with Israel targeting an installation at Iran's South Pars gas field on Saturday, the first attack on Tehran's oil and gas sector, which partially shut production. The attack on South Pars was surprising given its importance as a production facility, said Takayuki Ueda, chief executive of Japanese oil and gas explorer Inpex Corp (1605.T), opens new tab. "The market feels the situation is still under control by both countries, and I hope this situation will not be escalated," he told Reuters, adding that the firm's operations in the United Arab Emirates were running smoothly. "If this is a really, really a full-fledged war, I think oil price will be hiked to more than $100," Ueda said. Oil prices dipped on Monday after rising earlier in the session and surging 7% on Friday. OPEC secretary general Haitham Al Ghais, who spoke at the event, did not take questions about the conflict and its impact on oil markets from a Reuters reporter. Numerous other executives attending the event also declined to comment on the events in the Middle East. Energy services firm Baker Hughes said it continued to operate its facilities in the region. "It's a little early, and we've got to monitor the situation with regard to what's the potential impact on supply," Chief Executive Lorenzo Simonelli told Reuters on the sidelines, adding that the firm's employees were safe. "Hopefully there's a de-escalation of tensions," he said.
Yahoo
4 days ago
- Business
- Yahoo
Conflict in Middle East shadows oil industry gathering in Malaysia
By Florence Tan and Sudarshan Varadhan KUALA LUMPUR (Reuters) -Global energy executives gathered in the Malaysian capital on Monday for an industry conference with an eye on the dramatic escalation in the conflict between Israel and Iran, which has fuelled worries that it could widen and disrupt supply. The head of Saudi state oil giant Aramco said conflict underscores the importance of oil and gas. "(History has) shown us that when conflicts occur, the importance of oil and gas can't be understated," Chief Executive Amin Nasser told delegates by videolink. "We are witnessing this in real time, with threats to energy security continuing to cause global concern," he said, without directly mentioning the fighting between Israel and Iran. Israel launched strikes on Friday against Iran, including on its nuclear power facilities, that it said aimed to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend, with Israel targeting an installation at Iran's South Pars gas field on Saturday, the first attack on Tehran's oil and gas sector, which partially shut production. [O/R] The attack on South Pars was surprising given its importance as a production facility, said Takayuki Ueda, chief executive of Japanese oil and gas explorer Inpex Corp. "The market feels the situation is still under control by both countries, and I hope this situation will not be escalated," he told Reuters, adding that the firm's operations in the United Arab Emirates were running smoothly. "If this is a really, really a full-fledged war, I think oil price will be hiked to more than $100," Ueda said. Oil prices dipped on Monday after rising earlier in the session and surging 7% on Friday. OPEC secretary general Haitham Al Ghais, who spoke at the event, did not take questions about the conflict and its impact on oil markets from a Reuters reporter. Numerous other executives attending the event also declined to comment on the events in the Middle East. Energy services firm Baker Hughes said it continued to operate its facilities in the region. "It's a little early, and we've got to monitor the situation with regard to what's the potential impact on supply," Chief Executive Lorenzo Simonelli told Reuters on the sidelines, adding that the firm's employees were safe. "Hopefully there's a de-escalation of tensions," he said.
