Saudi Aramco to Finalize LNG Agreements with U.S. Firms During Crown Prince's Washington Visit

According to Reuters post, Saudi Aramco is poised to finalize two liquefied natural gas (LNG) supply agreements with Woodside Energy and Commonwealth LNG during Crown Prince Mohammed bin Salman's visit to Washington next week, sources familiar with the situation informed Reuters.

As the world's largest oil exporter, Aramco aims to strengthen its position in the LNG market, particularly in the U.S., where LNG capacity is projected to nearly double over the next four years.

Previously, Aramco has established agreements with other U.S. companies, including NextDecade’s Rio Grande LNG. Aramco's goal is to achieve 20 million tons per annum (mtpa) of LNG capacity, with 4.5 million tons currently underway, as stated by President and CEO Amin Nasser in an analyst call in August.

Industry sources suggest that Aramco is likely to secure LNG supply of up to 2 mtpa from Commonwealth LNG’s proposed facility in Cameron, Louisiana. Additionally, the deal with Woodside may involve Aramco acquiring a stake in the company's $17.5 billion Louisiana LNG project, along with an offtake agreement to ensure up to 2 mtpa of LNG supply.

Aramco has declined to comment on the agreements. Woodside has stated it does not address market speculation but referred to an earlier agreement for potential collaboration with Aramco. Commonwealth LNG did not respond immediately to requests for comment.

For Commonwealth LNG, the agreement would help it move closer to its objective of selling 8 mtpa from its planned 9.5 mtpa capacity.

The company aims to construct the first integrated LNG export facility in the U.S., utilizing gas from its major shareholder Kimmeridge's Eagle Ford shale production.

A financial investment decision on the plant's construction is expected by year-end. Woodside has already granted final approval for its project, which consists of three trains with a total capacity of 16.5 million tonnes per year, anticipated to commence LNG production in 2029.