The oil giants in the Middle East pump billions of dollars into liquid gas

A new category of investors has begun to expand in the field of LNG, one of the most popular goods in the world, and exposes billions of dollars to new projects, which extend traditional players. Thanks to the availability of billions of dollars and strong government support, national oil companies – especially in the Middle East – spend the production of liquid natural gas worldwide, and are expected to double the productive capacity over the next ten years. This category takes daring steps, powered by the big profits that leading businesses are currently achieving in the sector, as Shell PLC, as evidenced by the $ 19 billion offer this week to acquire Australian Santos LTD LNG. The Saudi Aramco has recently placed itself among the largest liquid natural gas players in the world to meet Egypt’s energy needs, while Qatar Energy – which has been a big offer for years – is moving forward to develop its export project in Texas. The growth in demand for transitional fuel, although liquid natural gas is still less important than oil within the global energy system, it is a faster growth and more sustainable demand thanks to its role than a transitional fuel that supports renewable energy sources. However, several projects have been hampered by delaying in the implementation and the cost of the budgets has exceeded, and they need money to complete it, and for the wave states, these projects provide the opportunity to increase the international influence in energy, financing and political geography, as well as diversify the economies of oil. “It seems that the liquidation is still the best option among all the different hydrocarbon goods,” says Ugan foods, executive director of “Acceneture”. He explained that the profit margins of investment in liquid natural gas and the trade are “almost unprecedented in any other hydrocarbon product.” Asian businesses enter the liquid gas race that includes the investment wave, led by ‘ADNOC’, ‘Aramco’ and ‘Qatar Energy’ Bahrain, Kuwait and the Sultanates or Oman, as these countries want to expand their activities in the LNG trade, a field that has been successful for companies that have been investing in recent years. Some of these countries are also dependent on fuel imports, so trying to expand production to meet local needs. Middle -Eastern oil companies that expand into the investment in the global liquid natural gas business, the national oil company, investment abroad, are on third parties, production agreements, Aramco, “Midocean”, a preliminary agreement to buy an interest in the “Port Arthur” project of the company “Simpra Enenergy”, the second phase of the first phase, Phase of the “Project (NextDecade Rio Grand 2)) Energy Port Arthur, the second phase of” Simberra Energy Port Arthur “adnoc/XRG Project Grande Grande Grande” Rovoma “Basin in Mozambique Qatar Energy Project” Golden Pass “Golden Pass” Yes “Kuwait Petroleum Corporation (Via Kofbeek) Continuous discussions with “Woodside” on LNG project in Louisiana created. No source: “Bloomberg” and “Bloomberg NF” are not limited to this phenomenon in the Middle East, although most of the latest activities have been launched from it; Petroliam National BHD, the state oil and gas business in Malaysia, and other companies from Southeast Asia want to expand locally outside its borders in light of the decline in liquid natural gas production. ‘ADNOC’, ‘Aramco’, ‘Qatar Energy’ and ‘Petronas’ did not immediately respond to requests for suspension. Environmental and financing challenges for gas projects have become more difficult to complete projects of liquid natural gas and large oil companies in the United States, which have been dominated in this area so far, as climate goals have limited the ability of some buyers to sign decades – long -term supply contracts. Various projects suffer from time and costs, as they face operational risks and fluctuations. As for competitors in the Middle East, they have much greater financial capabilities as it exceeds the total value of the unit of international gas and chemicals of ADNOC, known as ‘XRG’ $ 80 billion. Massimo de Eduardo, vice president of “Woodmackeenzie”, said: “We see how the flow of private capital helps to complete these projects, and part of these funds comes directly from the government’s oil companies. Since many of these Middle Eastern companies will also play the role of liquid natural gas buyers before they sell the need to sign. To make the final investment decision, less urgent. Christopher Strong, a partner in the logistics sector offers and projects. At 2030, its highlight will reach, and the risk of the supply of liquid natural gas will exceed the volume of consumption. Energy, “Aramco” and “Adnoc” – focus on an early stage on creating trading units. Expanding the supplier base benefits the liquid natural gas buyers, as it will improve competition and provide more options. A significant growth in the production of liquid natural gas, and strives to add more … The question is now: What is the size of the additional question that will appear? “