Saudi Aramco is considering spinning off its growing gas business into a new division and listing part of it, a sign of the pressure the company faces to raise cash for the government and draw foreign investment into the kingdom.
The state-controlled oil producer plans to create a third business segment for gas, alongside its upstream and downstream operations, Reuters reported. The firm has also been working on plans to raise as much as $35 billion by monetizing other assets, Bloomberg reported earlier this year. It has previously weighed spinning off its trading unit, insurance arm, and airline.
Aramco is in the midst of a $100 billion push to develop the Jafurah field, part of a plan to boost its gas output by more than 80% by 2030, and is also looking to buy stakes in gas assets abroad. Gas has become a major focus for Gulf energy companies, which expect demand for the fuel to last for decades beyond peak sales of oil.
