Saudi Aramco (Saudi Arabian Oil Company) has signed a long‑term liquefied natural gas (LNG) supply agreement with U.S. developer Commonwealth LNG. Under the deal, Aramco will receive 1 million metric tonnes per annum (mtpa) of LNG from the planned Louisiana export terminal, with an option to increase volumes to 2 mtpa as project development progresses. The agreement also aligns with Aramco’s portfolio diversification into gas and LNG. Commonwealth LNG’s aim for a final investment decision (FID) is also getting clearer. Altogether, this deal also strengthens trans‑Atlantic commercial linkages as global demand for lower‑carbon natural gas continues to increase.

Development Details

Commonwealth LNG export facility is being developed in Cameron Parish, Louisiana, with initial capacity of 1 mtpa for Saudi Aramco under this agreement. Expansion options allow the offtake to double to 2 mtpa, on condition of the successful development of the project and market conditions. The terminal will use U.S. natural gas feedstock from the Gulf Coast pipeline network. Commonwealth LNG plans to proceed to FID once financing, permitting, and detailed engineering are finalized.

Commonwealth LNG and the Global Markets

Global LNG markets are also in a phase of expansion driven by long-term demand in Asia and Europe. This is driven by calls for energy security and the transition from higher-carbon fuels to lower-carbon alternatives. For Aramco, traditionally an oil producer, securing long-term U.S. LNG offtake also diversifies its supply. This is alongside strengthening its position in the international gas market. Commonwealth LNG also continues to improve its financial position as it aims for FID on the Cameron Parish, Louisiana terminal.

Commonwealth LNG Export Terminal Project Fact Sheet

Location: Cameron Parish, Louisiana

Developer: Commonwealth LNG

Offtaker: Saudi Aramco

Initial Capacity: 1 mtpa LNG expandable to 2 mtpa.

Project Status: FEED complete. Progressing toward FID.

Project Timeline

2024: Conceptual development, permitting, and market studies start.

2025: FEED completed and preliminary financing discussions advanced.

January 2026: Long-term supply agreement signed with Saudi Aramco.

2026 onward: Final engineering, permitting, and financing expected. Construction and phased commissioning to follow.