Ministry of Petroleum Resources has declared that ongoing arrangements would lead to partnerships between Nigeria and Saudi Arabia on new investments in different energy projects.
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said a memorandum of understanding
is being worked out to lay basis for Saudi investments in Nigerian midstream and downstream petroleum industry.
According to him, the partnership whose frameworks would ready by May could lead to a new
refinery for Nigeria and acquisition of stakes in investments in Nigeria’s LNG sector.
“Areas of interest will cover the existing refinery revamp, building of a brand new refinery, LNG
investments and product supply trading in crude and refined products,” the ministry said in the
The statement went on to say that Saudi’s energy minister, Khalid Al-Falih had reiterated the
possibility of establishing an independent refinery in Nigeria, considering it the best hub from
which to reach other African countries.
Meanwhile, the world’s biggest oil exporter, Saudi Aramco, is reported to have sold its first LNG
cargo in a new leap into the liquid gas market. CEO of Aramco, Amin Nasser, said the company’s trading unit sold the shipment of liquefied natural gas from Singapore to an Indian buyer last month.
State-run Aramco seeks to become a “major player” in the gas industry and is looking for potential joint ventures and partnerships, Nasser said in Riyadh.
“There is a lot of potential to grow our gas in the kingdom. At the same time, we are looking at
The LNG deal is the latest example of Aramco’s effort to expand outside its historical business of
pumping and selling crude. The company plans to buy a controlling stake in the Middle East’s
largest petrochemicals maker, Saudi Basic Industries, and is investing in refineries in Asia and
While it doesn’t produce LNG itself, Aramco has been looking at gas assets in Arctic Russia and Africa, Saudi Energy Minister Khalid Al-Falih said Wednesday in Riyadh.
In January, Aramco hired an employee from Singapore’s Pavilion Energy Pte to develop its LNG
business, focusing on trading and marketing. Aramco also wants to develop Saudi gas resources and plans to almost double gas production in the kingdom over the next 10 years, Nasser said.
“For the first time ever, we will be exporting gas either by pipeline or as LNG from Saudi Arabia,”
he said. “For gas, we will be a major player.”
Gas emits less carbon than oil or coal when burned and is expected to be the fastest-growing fossil
fuel, with global demand forecast to rise 43% through 2040, compared with 10% for oil, according to the International Energy Agency.
Saudi Arabia plans also to boost its use of gas at home to replace crude as a fuel for power plants.