Tellurian has invested significantly in efforts to finance and construct the Driftwood LNG plant. Credit: FOTOGRIN/Shutterstock.

Saudi Aramco is in discussions with US-based Tellurian and NextDecade regarding potential investments in two separate liquefied natural gas (LNG) projects, Reuters has reported.

The talks aim to enhance Aramco’s gas trading and production capabilities.

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Aramco is considering acquiring a stake in Tellurian’s Driftwood LNG plant, which has a capacity of 27.6 million metric tonnes per annum (mtpa) and is located near Lake Charles, Louisiana, US.

Tellurian has invested significantly in efforts to finance and construct the Driftwood plant.

However, the company has faced financial challenges, with warnings to investors about potential insolvency before mid-2025 due to continuous losses and depleting cash reserves.

In 2023 Reuters reported that Tellurian was in talks with potential equity partners for its Driftwood LNG project.

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In February 2024, the US Federal Energy Regulatory Commission extended Tellurian’s construction permit for the Driftwood project by three years.

Aramco is negotiating a long-term gas purchase agreement from a proposed fifth processing unit at NextDecade’s Rio Grande LNG (RGLNG) project in Brownsville, Texas.

In May 2024, UAE-based Adnoc acquired a 11.7% stake in Phase 1 of the RGLNG project, which is being developed in phases, from an investment vehicle of Global Infrastructure Partners (GIP).

Adnoc and NextDecade also signed an offtake agreement for 1.9mtpa from Train 4 of the RGLNG project.

The first phase of the RGLNG project consists of three liquefaction trains, with a combined annual capacity of 17.5 million tonnes.

The Rio Grande project will have a full production capacity of 27mtpa.