• Gulf oil giants Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) are exploring investments in U.S. liquefied natural gas (LNG) projects, intensifying their competition with oil majors and Qatar in the rapidly growing super-chilled gas market. With demand for LNG projected to surge by 50% by 2030, both energy giants are seizing opportunities in the United States, now the world's leading LNG exporter, particularly to Europe. Saudi Aramco is reportedly in discussions to invest in phase 2 of Sempra Infrastructure's Port Arthur LNG project in Texas, while ADNOC is exploring an offtake from a proposed fourth processing unit at NextDecade's Rio Grande LNG export facility.

• The potential investments by Saudi Aramco and ADNOC signal their intent to capitalize on their fossil fuel resources amid the growing demand for LNG. However, several U.S. LNG projects have faced financial challenges in securing funding, partly due to increasing investor scrutiny on environmental, social, and governance (ESG) factors. Despite this, Kaushal Ramesh, Vice President for LNG Research at Rystad Energy, suggests that if ESG-focused banks are hesitant to finance U.S. projects, other investors may step in to fill the gap.