Adnoc eyes USD 9 bn US natural gas bid: Abu Dhabi National Oil Company (Adnoc) is mulling a bid for the natural gas assets of US oil and gas owner-operator Aethon Energy Management in a transaction that could be worth as much as USD 9 bn, sources familiar with the matter told Bloomberg on Friday. Aethon’s portfolio includes nearly 1.4k miles of gas pipes across Louisiana, Texas, and Wyoming, according to its website.

What now? The parties are in early-stage talks, with Adnoc now working with advisors on the transaction. However, the UAE major is up against some competition, with other prospective buyers eyeing Aethon’s natural gas and midstream holdings, which are concentrated in the oil-rich Texas and Louisiana states.

Adnoc’s rising US appetite: The oil-producing giant was reported to be planning on acquiringnatural gas fields in the US last month, to bolster its current US holdings and improve its supply of fuel and raw materials for stateside chemical and LNG export terminals. The firm’s USD 80 bn international investment arm XRG is also planning a major investement push in the US, including in sectors like the gas supply chain — from exploration and development to distribution.

REMEMBER- Adnoc’s first foray in the US market saw the firm last year acquire an 11.7% stake in the first phase of NextDecade's USD 18 bn Rio Grande LNG export facility in Texas.

ICYMI- UAE-US energy relations could strengthen even further: The UAE and the US are eyeing more cooperation on energy over the next five years, US Energy Secretary Chris Wright said during his visit to Adnoc’s headquarters this month.

Tags: