Saudi Aramco is in advanced talks to acquire 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the U.S.-based Commonwealth LNG terminal in Cameron, Louisiana, according to an exclusive Reuters reported on Wednesday. The potential deal would further cement Aramco’s push into the global LNG market as it accelerates efforts to diversify beyond crude oil exports.
According to unnamed sources briefed on the matter and cited by Reuters, the proposed offtake agreement would bring Commonwealth’s contracted volume to 7 Mtpa out of its 9.3 Mtpa capacity. The Houston-based developer is targeting a final investment decision in Q3 2025, with first gas deliveries projected for 2028. The parties have yet to finalize terms.
This marks the strongest signal yet that Aramco intends to take a material position in the U.S. LNG sector. It also follows earlier exploratory efforts with projects such as Delfin LNG and Energy Transfer’s Lake Charles facility, though those discussions have not resulted in formal agreements. The Commonwealth negotiations, if concluded, would give Aramco a direct channel into the fast-growing U.S. Gulf Coast export market, amid rising demand in Asia and Europe.
Aramco’s strategic pivot comes amid Saudi Arabia’s broader shift to monetize its gas resources and expand its downstream portfolio. The company’s first LNG investment included a minority stake in MidOcean Energy, announced in 2023, but with no physical volumes specified.
Commonwealth’s Louisiana project offers fully modular construction and faster build timelines, a selling point for buyers seeking early cargoes before the end of the decade. The company has already secured long-term supply deals with Woodside and Gunvor, and is racing to lock in remaining capacity.
Reuters first reported the Aramco-Commonwealth negotiations on July 9. The story was later amplified by financial outlets; however, Aramco and Commonwealth have not publicly commented.
By Charles Kennedy for Oilprice.com
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