The saudi arabia lng export strategy is unusual at first glance. Saudi Arabia consumes all its natural gas output domestically and has no LNG facilities. Yet Aramco is pushing hard to become a global LNG player by building a portfolio of LNG volumes from projects abroad. CEO Amin Nasser said Aramco is aiming to build a long-term LNG portfolio of 20 million tons per year (Mt/y). The company has not ruled out exporting LNG one day, but its growing natural gas production is mainly for domestic use.
Aramco’s approach is to secure LNG from major export hubs and then trade it. AGBI reported that Aramco’s contracts have no restrictions on where it can re-sell the gas, aside from provisions such as sanctions. That matters because the same cargo can go to Europe or Asia depending on where demand is greatest. Aramco is also increasingly involved in the spot trade, with cargoes sent to Bangladesh, Egypt, and China in recent months.
In the global market, scale and access are critical. One snapshot shows how concentrated liquefaction capacity is among the top producers. The 2025 International Gas Union estimates global liquefaction capacity totals nearly 500 million tonnes per annum. It also lists the United States at 97.5 mtpa, Australia at 87.6 mtpa, and Qatar at 77.1 mtpa.
How Aramco Is Assembling LNG Supply and Optionality
Aramco started building its international LNG footprint in 2023 by taking a stake in MidOcean Energy LLC, which holds positions in export facilities in Australia and Peru. Insights Global said Aramco expanded its stake in MidOcean to 49%. AGBI also described the initial MidOcean move as a $500 million minority stake. These holdings matter because they give Aramco exposure to LNG flows outside the kingdom, even while Saudi Arabia has no LNG plants of its own.
The US is a major focus. Natural Gas Intelligence reported that Aramco signed a nonbinding agreement with Sempra Infrastructure to take a 25% stake in Phase 2 of Port Arthur LNG in Texas and purchase up to 5 Mt/y. It also signed a contract to buy 1.2 Mt/y from the Rio Grande LNG project in South Texas. Reuters also reported 20-year supply agreements for Commonwealth LNG’s proposed Louisiana project and NextDecade’s Rio Grande terminal in Texas. AGBI added that two LNG projects in Louisiana, including one with Commonwealth LNG and another with MidOcean, were among 51 memoranda of understanding Aramco and its subsidiaries signed with US companies.
This external LNG build-out sits alongside a deeper domestic gas push. Insights Global said Aramco secured contracts exceeding $25 billion for the expansion of the Jafurah gas field and the third phase of its main gas network upgrade. Reuters described Jafurah as a $100 billion bet. The same Reuters report said Jafurah is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensate. Aramco expects domestic gas demand to keep rising, driven by industrial growth across manufacturing, mining, and petrochemicals.
What is the saudi arabia lng export strategy in simple terms?
How big is Aramco’s LNG portfolio target?
Which US LNG deals are part of Aramco’s expansion?
Why does resale flexibility matter for Aramco’s gas trading business?
