Saudi Aramco is reportedly working with investment bank Evercore on plans to separate its natural-gas operations into a standalone division, a move that could eventually open the business to outside investment or a public-market listing.
According to Bloomberg News, the proposed restructuring could give Aramco’s gas activities a clearer corporate structure as the Saudi energy giant expands its domestic gas output and develops an international liquefied natural gas portfolio. The potential unit could be valued at more than $100 billion if it were listed or if a minority stake were sold, people familiar with the matter said.
The initiative is reportedly linked to an internal restructuring effort known as “Project Gamma.” Boston Consulting Group has also advised Aramco on the potential separation, with the aim of unlocking more value from gas assets that currently sit within the wider oil business.
Creating an independent gas platform could help Aramco attract strategic partners and capital while giving investors a more transparent view of the performance and growth prospects of its gas operations. It may also support the company’s wider strategy of increasing gas production at home while pursuing LNG opportunities internationally.
The discussions remain preliminary, and there is no certainty that Aramco will proceed with an initial public offering, minority listing or external investment transaction. Reuters previously reported that Aramco was considering a new dedicated gas division as part of its broader business reorganisation.
Saudi Aramco explores standalone gas business with Evercore
