Aramco expands LNG portfolio and advances Jafurah gas development amid regional energy disruptions

Saudi Aramco is expanding its presence in global liquefied natural gas (LNG) markets while accelerating development of the Jafurah unconventional gas field, executives said during the company’s recent earnings call with analysts.

The strategy comes as energy markets face heightened geopolitical tensions in the Middle East, including disruptions to shipping through the Strait of Hormuz linked to the ongoing conflict involving Iran. The waterway normally carries about 20% of the world’s oil and a significant share of global LNG shipments, making any disruption a major concern for energy markets.

During the call, Aramco President and CEO Amin Nasser said the company is pursuing international LNG investments while continuing to build domestic gas production capacity to support Saudi Arabia’s long-term energy strategy.

Amin Nasser

Growing LNG portfolio

Aramco has taken several steps in recent years to establish a presence in global LNG markets through strategic partnerships and long-term supply agreements.

In 2024, the company formed a partnership with MidOcean Energy aimed at acquiring stakes in LNG projects worldwide. Through that arrangement, Aramco gained exposure to assets including the Peru LNG export facility and a stake in an LNG development project referred to as Envero LNG.

The company has also secured LNG supply from the United States. In September 2025, Aramco activated a 20-year sales and purchase agreement with NextDecade for LNG offtake from Train 4 of the Rio Grande LNG project in Texas.

Under that agreement, Aramco will receive 1.2 million tons per year of LNG.

“We did take some positions to develop our LNG portfolio and enhance our trading capability,” Nasser said. “We will continue to monitor attractive opportunities globally.”

According to Nasser, Aramco has positioned itself across several projects that could provide cumulative LNG offtake of up to 3.2 million tons per year by 2030. The company is also negotiating additional potential LNG supply agreements with global partners.

Jafurah gas field expansion

At the same time, Aramco is advancing development of the Jafurah unconventional gas field, one of the largest shale gas developments outside North America.

Phase 1 of the project was commissioned in December 2025 and is expected to ramp up to approximately 650 billion cubic feet of gas production.

Phase 2 is scheduled to begin in 2027 and will involve drilling additional wells and expanding field infrastructure. When fully developed, Jafurah is expected to reach a sustainable production rate of about 2 billion cubic feet of gas per day by 2030.

“Phase 2 will allow Jafurah to ramp up to reach a sustainable rate of 2 billion cubic feet of gas per day by 2030,” Nasser said. “More important than the gas itself, it will bring around 650,000 barrels per day of high-value liquids and about 450 billion standard cubic feet per day of ethane.”

The project is a central element of Saudi Arabia’s strategy to increase domestic gas production and reduce the use of crude oil in power generation.

Geopolitical backdrop

The company’s LNG and gas expansion plans are unfolding against a volatile geopolitical backdrop in the Middle East.

During the earnings call, executives discussed contingency measures to maintain exports amid disruptions to shipping in the Strait of Hormuz caused by the regional conflict involving Iran. Nasser warned that prolonged disruption of the waterway could have “catastrophic consequences” for global energy markets.

The Strait of Hormuz normally handles around 17 million to 18 million barrels per day of oil and products from Gulf producers, making it one of the world’s most critical energy chokepoints.

Regional tensions have also included attacks on energy infrastructure and threats to shipping routes, highlighting the vulnerability of global energy flows to geopolitical risks.

Against that backdrop, Aramco executives said the company continues to prioritize operational resilience and infrastructure flexibility while pursuing growth in gas and LNG markets.