Aramco Unveils Plan for Standalone Gas Division Amid Efforts to Diversify

Saudi Aramco is reorganizing its business to create a standalone gas division as part of its efforts to expand domestic natural gas production and global liquefied natural gas (LNG) portfolio. This move aligns with the strategy of Gulf state oil companies, which often offer outside investors pieces of their businesses while retaining operational control.

Aramco will shift from two main business segments, upstream and downstream, to three, with each unit having its own president. The new gas division will allow Aramco to develop its natural gas resources domestically and build an LNG portfolio abroad. Jafurah, an unconventional field that began operating last year, is the crown jewel of Aramco's domestic gas business.

Aramco has explored various options to raise cash, including a lease-and-leaseback agreement for its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners. The company may also consider listing a minority stake in the gas business, similar to its minority listing on the Saudi Exchange in 2019.