Global Trading Wing of Saudi Energy Firm Acquiring 1 MTPA of US LNG

A subsidiary of Saudi Arabian energy firm Aramco is committed to acquiring one million metric tons of liquified natural gas (LNG) from Commonwealth LNG’s liquefaction and export terminal on the Louisiana coast of the Gulf of Mexico.

Natural gas producer Caturus announced the sale and purchase agreement between Aramco Trading and Commonwealth LNG. The latter facility is still under development on the Gulf Coast in Cameron Parish, Louisiana.

The natural gas shale revolution has positioned the U.S. as the world’s top exporter of LNG. LNG is natural gas chilled to a liquid state for depressurization and shipping stability.

"This agreement highlights the strong international demand for U.S. LNG and underscores how our longstanding relationships and capabilities position Caturus to serve global markets, “said Caturus CEO David Lawler. “Our contract with Aramco Trading underscores the differentiated value Caturus can bring through our global reach in offering wellhead to water services.”

Caturus is owner and developer of the Commonwealth LNG project expected to produce 9.5 million metric tons of LNG per year once its operational by 2029. The facility at the mouth of the Calcasieu Pass will source natural gas from U.S. producers and connect it to international markets.

Commonwealth is advancing toward a final investment decision with line of sight to secure its remaining capacity. Aramco Trading will join Glencore, JERA, PETRONAS, Mercuria, and EQT among international energy companies entering into long-term offtake contracts with the platform.

"This agreement reflects Aramco Trading's efforts to secure a reliable, long-term energy supply for global markets while strengthening our presence in the LNG sector," said Mohammed K. Al Mulhim, Aramco Trading President & CEO. "Our contract with Commonwealth LNG allows us to diversify supply sources, strengthen energy security, and deliver value across the entire energy chain."

U.S. LNG companies currently export close to 14 billion cubic feet per day. With the addition of projects such as Commonwealth, that export capacity is predicted to grow to 26 billion cubic feet per day by the end of this decade, according to the U.S. Department of Energy.

Overall, U.S. firms produce an average of 109 billion cubic feet per day. LNG exports are going to companies in Europe, Asia and Africa.