Gulf hunt for natural gas heats up shares of Australia’s Santos
Trade from offshore Mediterranean gas fields could be interrupted if the conflict between Israel and Lebanon’s Hezbollah turns into full-scale war
ADNOC shipment arrives at floating LNG terminal in the Elbe port of Brunsbüttel. (Getty Images)
Demand for new sources of natural gas as a cleaner alternative to oil is leading top Gulf energy companies to look at acquisition prospects in Australia. Most recently, both Saudi Aramco and UAE-owned ADNOC have considered making separate bids for Adelaide-based Santos Ltd., the country’s No. 3 producer of liquified natural gas, Bloomberg reports.
While none of the three companies confirmed discussions about a potential purchase, shares of Santos on the Australian Securities Exchange jumped as much as 6.5% after Wednesday’s report, boosting its market value to $17.9 billion. In the past, Santos has rejected takeover bids from U.S. and Australian competitors, as well as offers to buy just its LNG business.
Saudi Energy Minister Prince Abdulaziz bin Salman announced on Tuesday that Aramco has discovered two natural gas fields and two natural gas reservoirs within the kingdom. The company said last week that it signed contracts worth more than $25 billion to expand its gas business.
Trade from Mediterranean gas fields, meanwhile, could be interrupted if the conflict between Israel and Lebanon’s Hezbollah turns into full-scale war, The National reports. Abu Dhabi-based Mubadala Energy is a partner in Israel’s offshore Leviathan gas field, along with U.S.-based Chevron Corp.