Saudi Aramco Unlocks Natural Gas Business Value

Saudi Aramco is planning to spin off and restructure its natural gas business, a move that could unlock significant value for the company. According to reports, Saudi Aramco has hired investment bank Evercore as an advisor to help plan the restructuring, which will be done through an internal project called 'Project Gamma'. The goal of this project is to increase transparency and efficiency in the natural gas business, allowing it to attract new external investments and potentially even list a minority stake on the market.

The valuation of the natural gas business segment is expected to exceed $100 billion, making it one of the most valuable assets within Saudi Aramco. This move aligns with the company's goal of introducing external capital to support Saudi Arabia's economic diversification efforts. By separating its natural gas business from its core oil extraction operations, Saudi Aramco will be able to tap into new financing channels and improve the assessment and development mechanism for this segment.