Positive Industry News and Events

Positive Industry News and Events

Aramco Weighs LNG Deals with Woodside and Commonwealth LNG in US Expansion

Saudi Aramco may be preparing to sign two major LNG agreements in the United States during Crown Prince Mohammed bin Salman’s visit to Washington this week, according to Reuters. While none of the companies involved have confirmed the information, the reported deals would mark another step in Aramco’s ambition to expand its liquefied natural gas portfolio, particularly in the US, where export capacity is expected to nearly double over the next four years. Also as reported by the agency, the Saudi energy giant is targeting 20 million tonnes per annum of LNG capacity and has already secured volumes from NextDecade’s Rio Grande project.

Sources said Aramco is expected to secure up to 2 million tpa of LNG from Commonwealth LNG’s proposed 9.5 million tpa facility in Cameron, Louisiana. The project operator aims to reach a final investment decision by the end of the year and recently received a four-year extension from the US Federal Energy Regulatory Commission to complete construction. For Commonwealth LNG, a supply agreement with Aramco would bring it closer to selling out its planned capacity for the first integrated LNG export facility linked to production from shareholder Kimmeridge’s Eagle Ford shale assets.

Aramco is also reportedly in advanced discussions to take equity and LNG offtake from Woodside Energy’s US$17.5 billion Louisiana LNG project, which reached a final investment decision in April and is scheduled to begin production in 2029. Sources told Reuters that the Saudi company may commit to as much as 2 million tpa from the 16.5 million tpa development. Woodside and Aramco already signed a non-binding collaboration agreement earlier this year, though both firms have declined to comment on the latest reports. As talks remain unofficial and unconfirmed, these potential deals highlight Aramco’s growing focus on establishing a long-term foothold in the expanding US LNG export market.

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