Saudi Aramco Seeks 2M Tons LNG from Commonwealth Louisiana Facility

Saudi Aramco is in advanced negotiations to secure an annual supply of 2 million metric tons of liquefied natural gas (LNG) from Commonwealth LNG's proposed Cameron, Louisiana facility, marking a strategic expansion into the U.S. LNG market. This deal would bring Commonwealth LNG closer to its sales target of 8 million metric tons per annum from the plant's 9.3-9.5 mtpa capacity and support its goal of a positive financial decision on construction by the end of 2025. The U.S. facility is notable as the nation’s first integrated LNG export terminal, sourcing gas from Kimmeridge’s Eagle Ford shale production, and aims to begin deliveries by 2028. Aramco's potential agreement follows its broader efforts to diversify beyond crude oil and expand its LNG portfolio, including prior exploratory talks with other U.S. projects such as Delfin LNG and Energy Transfer's Lake Charles terminal. This move aligns with Saudi Arabia's strategic shift to monetize gas resources and capitalize on growing LNG demand in Asia and Europe. Commonwealth LNG has already secured contracts with buyers like Woodside and Gunvor and is racing to finalize remaining capacity agreements.