The News
Arabian Gulf countries are betting on “Gulf of America” liquefied natural gas.
Abu Dhabi’s Mubadala Energy agreed to acquire a 24.1% stake in Kimmeridge Texas Gas — which has shale assets in Texas and plans to build a 9.3 million ton-per-year LNG plant in Louisiana — and Aramco signed a 20-year deal to buy 1.2 million tons of the fuel annually from Rio Grande LNG on the southern tip of Texas.
The deals build on growing interest from Gulf energy companies in US natural gas, which has already attracted investments from Abu Dhabi and Qatar. Global demand for LNG is expected to grow until 2050, even as oil appetite declines, and the US is projected to supply about a third of the global market by then. Qatar, one of the world’s top LNG exporters, plans to boost output by 85% by 2030.
Demand is growing everywhere. Consumers in India and Europe need more gas, and new markets are emerging even in the energy-rich Gulf. Kuwait and Iraq are importers, and Bahrain is expected to receive its first cargo this month.