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OIL & GAS-
#1- Aramco signed a non-binding agreement with US liquefied natural gas (LNG) development company NextDecade to supply 1.2 mn tons per annum of LNG for 20 years, according to two separate statements (here and here). Under the terms, the LNG will be supplied from the fourth liquefaction train at Next Decade’s Rio Grande LNG Facility in Texas. The two sides are negotiating a binding agreement, contingent on a positive final investment decision on Train 4, which is expected in the second half of this year, according to NextDecade.
Background: Aramco has been in talks with NextDecade for a long-term gas purchase agreement from the Texan company’s Rio Grande facility. It has also been involved in negotiations with Houston-based Tellurian over a potential stake purchase in the US firm’s 27.6 mn metric ton per annum (mtpa) Driftwood LNG plant in Louisiana.
Why this matters: Aramco Upstream President Nasir K. Al Naimi said the oil giant was looking at potential investments to “expand our presence in international energy markets. “We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,” Al Naimi said. Aramco’s play for LNG comes amid forecasts of the LNG market growing globally by 50% by 2030, with LNG capacity almost doubling in the US over the end of the decade, according to Reuters.
ALSO- Aramco signed an MoU with global tech player Dell to explore ways to use advanced technologies for the Kingdom’s energy sector, Arab News reported. These include artificial intelligence, quantum computing, edge computing solutions and others. It aims to improve energy optimization, maintenance, weather modeling, and others.
#2- Tadawul-listed oil and gas drilling company Ades Holding inked an offshore drilling contract worth SAR 185 mn with Egypt’s state-owned Suez Oil Company (Suco), it said in a disclosure to Tadawul. The two-year contract involves the operation of a standard jack-up rig in Egypt from Ades’ current fleet, which is expected to start in the second half of the year. The signing of the agreement came weeks after Suco awarded the contract, which was then valued at SAR 161 mn. However, the contract was amended to extend to two years from an initial set period of 21 months, according to Ades.
Background: Ades Holding landed in March a 10-year service agreement that will see it work to boost oil production at two brownfields in Egypt. The agreement was signed with two subsidiaries of the Egyptian General Petroleum Corporation — Suco and Offshore Shukheir Oil Company (Osoco). It sees Ades investing USD 30 mn in Suco and USD 36 mn in Osoco, over the first three years. The consortium’s share of the additional production will range between 61% and 72% depending on production volume and price factors. The project is slated for launch in July 2024.
CAPITAL MARKETS-
China has approved having exchange-traded funds (ETFs) track equities listed on Tadawul, Reuters reports, citing two unnamed fund managers. The ETFs, which are managed separately by Shanghai-based Huatai-Pinebridge Investments and Shenzhen-based Southern Asset Management, will reportedly track Hong Kong-listed CSOP Saudi Arabia ETF, the sources said. This would pave the way for investors to trade Saudi stocks including oil giant Aramco and others.
BACKGROUND- The first Saudi ETF in Asia debuted in Hong Kong last November. Fund manager CSOP Asset management said at the time it was looking to cross list the ETF in Shanghai in the second half of the year.
AVIATION-
We might see some of King Salman International Airport’s going live in 2026: King Salman International Airport — an expansion of the capital’s King Khalid International Airport — will open its private aviation terminal in 2026, the airport’s acting CEO Marco Mejia told Asharq Business. “The airport is a brownfield, it’s an expansion of the existing King Khalid Airport and for that reason we’re developing different phases,” Mejia said. The airport plans to introduce a new runway in 2027, a passenger terminal in 2028, and its “iconic terminal” by 2030, he said. Construction is set to continue until 2034, he added.
About the airport: Unveiled in November 2022, the airport is poised to be one of the world’s largest airports with an area spanning 57 square kilometers with six parallel runways. It is set to accommodate up to 120 mn passengers by 2030 and 185 mn travelers by 2050.
HEALTHCARE-
Healthcare group Al Hammadi has completed the sale of one of its plots in Riyadh’s Al Rayyan district to Emmar Ocean in a transaction valued at SAR 124.6 mn, it said in a disclosure to Tadawul. Proceeds from the sale will be used to support the company’s expansion plans, it said in an earlier disclosure.
