Oil giant Saudi Aramco is postponing the planned initial public offering (IPO) of its energy trading unit, Aramco Trading Company (ATC), reported Bloomberg, citing sources.

In recent months, the government-backed company has reduced the pace of preparation for the Riyadh IPO, sources said.

The company has not set a new schedule for the IPO, which could be postponed until 2024 if the market situation does not improve, they added.

Previously, Aramco had planned to list the business on the Riyadh stock exchange at a valuation of over $30bn in late 2022 or early this year.

However, the company is now finding it challenging to list a business of such a large size on the exchange due to the current situation, according to sources.

Before proceeding with the IPO, the company also hopes to complete the integration of its main trading unit with the trading arm of its US refining business Motiva.

Earlier this year, ATC completed the acquisition of Motiva and launched Aramco Trading Americas.

Aramco has approached banks such as Goldman Sachs Group, JPMorgan Chase, and Morgan Stanley to explore the possibility of the listing, the sources said.

The talks are still ongoing, and the specifics of the offering may change, they added.

Earlier this week, reports emerged that Aramco is considering exporting liquefied natural gas (LNG) instead of blue hydrogen.

Aramco CEO Amin Nasser said the company will only invest in hydrogen export facilities if the supply agreements are signed.