Four sources confirm that Saudi Aramco is negotiating to acquire 2 million tonnes per annum of liquefied natural gas from Commonwealth LNG’s planned Cameron, Louisiana export facility. This addition would bring Commonwealth closer to its ambition of locking in 8 mtpa from its total 9.5 mtpa capacity, enhancing its commercial viability and drawing it nearer to a final investment decision by year‑end.
Commonwealth LNG, backed by private equity firm Kimmeridge, intends to develop the U. S.’s first vertically integrated LNG plant—sourcing Eagle Ford shale gas for liquefaction and export. The facility currently holds 4 mtpa in binding sales agreements and a further 1 mtpa via a heads‑of‑agreement, non‑binding contract. Confirmation of the Aramco deal could secure much-needed supply assurance to justify construction.
Aramco, the world’s largest oil company by market capitalisation, is diversifying its energy reach by steadily growing its LNG portfolio. It has previously signed offtake agreements with NextDecade’s Rio Grande LNG and is evaluating stakes in other major U. S. projects, including Delfin LNG’s floating terminal and a planned Lake Charles facility from Energy Transfer. U. S. LNG export capacity is forecast to nearly double within four years, part of a global pattern where capacity is expected to grow by around 50% by 2030.
In May, Woodside Energy, which received the go‑ahead for its Louisiana LNG project, entered into a non‑binding agreement with Aramco to explore equity investment and LNG offtake, with first gas expected in 2029. These moves indicate a broader trend of Gulf energy superpower forming strategic ties with U. S. producers, leveraging supply assurances while gaining exposure to diversified energy assets.
Market analysts highlight that long‑term contracts like these underpin capital‑intensive LNG projects. By pre‑securing buyers, developers ensure access to financing and mitigate risk for project completion. Commonwealth’s capacity utilisation will be critical for its final investment decision later this year, and Aramco’s involvement could provide a decisive boost.
Geopolitically, the expansion of U. S. LNG exports aligns with broader Western energy security goals, diminishing reliance on Russian gas and supporting diversification in Asian and European markets. Aramco’s participation signals confidence in U. S. supply reliability and underlines the kingdom’s strategy to reposition as a global energy powerhouse beyond crude oil.
As Commonwealth moves towards resolution on funding and offtake by December, the project is inching closer to construction. The deal with Aramco, if finalised, would mark a strategic milestone for both companies, reshaping LNG trade dynamics and strengthening trans‑Atlantic energy ties.
