Russia is seeking new buyers for its Arctic gas supplies, with Saudi Arabia a potential market for Moscow's newly exploited natural resource.
Moscow is looking to nab Saudi Arabia as a potential buyer for its Arctic gas, as Russia tells Riyadh it can save money by purchasing the newly exploited natural resource. Russia started its first shipments of liquid natural gas (LNG) from a $27 billion project in its Arctic region this week, which Moscow hopes will circumvent US-EU sanctions.
Among the potential markets for the LNG is Saudi Arabia, which is looking to break its reliance on oil.
"Buy our gas and you'll save oil," President Vladimir Putin told Saudi Arabia's Energy Minister Khalid al-Falih who attended the opening ceremony in Russia, Reuters reported.
After a traditionally uneasy relationship Riyadh and Moscow have recently bonded, with King Salman the first Saudi head of state to visit Russia following a royal tour this October.
The two energy giants have worked together to cut production and rescue tumbling oil prices, which has seen a stabilisation in the market over the past year.
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Riyadh is looking to diversify its economy away from its reliance on oil, and possibly looking at using gas for domestic use so it can export more oil, which is heavily subsidised inside Saudi Arabia.
Russia is looking to open new gas fields and selling to the international market - particularly China - after Western sanctions over Moscow's intervention in Ukraine piled economic pressure on Putin.
Editor's note: The article has been adapted from its original source.
