The energy transition is a global challenge, and energy companies in many regions face increasing pressure to accelerate their liquefied natural gas (LNG) projects as natural gas solidifies its role as a critical transition fuel. This pressure leads to novel collaborations in the gas value chain and low-carbon products. For example, KSA’s $100B effort to accelerate in-country gas production will lead to strategic partnerships to expand its domestic output for local use and export to diversify revenue. This aligns with Saudi Arabia’s broader strategy to lead in natural gas and build advanced infrastructure. Increasingly, we expect similar partnerships and joint ventures to capitalize on a growing hydrogen economy. These global partnerships, driven by the urgency of the energy transition, need to demonstrate positive local impact: in-country employment and localized and distributed energy infrastructure (including renewable energy projects and energy storage systems) that reduce dependence on volatile global energy markets.
The implications extend beyond the energy industry: To comply with regional data regulations and manage data sovereignty requirements, energy companies depend on distributed digital highways. The industry must work with cloud hyperscalers to set up in-country data centers to support real-time data analytics, AI-driven operations, and cloud services. Even as energy companies compete, they must collaborate on building these digital infrastructures, which will become the shared backbone that enables faster, more secure data handling and drives collective open innovation and efficiency.