DUBAI: Saudi Arabia’s state-run energy firm is splitting its gas production division in two, as the fuel becomes increasingly important for expanding its chemicals business and amid efforts to position itself for the energy transition.
Saudi Arabian Oil Co will create two new divisions, named Southern Area Gas Operations and Northern Area Gas Operations, according to people familiar with the matter. Aramco declined to comment.
Gas is becoming increasingly important to Saudi Arabia, the world’s largest oil exporter, as it expands its chemicals business, which uses the fuel for feedstock. The country is also looking to convert its power plants to gas-fired ones, which could free as much as one million barrels a day of crude for export. It is trying to position itself for the transition by becoming a supplier of blue hydrogen. ― Bloomberg