Oil giant Saudi Aramco is currently negotiating with US-based Commonwealth LNG to purchase liquefied natural gas (LNG) from the planned export terminal in Cameron, Louisiana, according to four sources cited by Reuters.
Two of the sources revealed that the discussions involve a potential supply deal of 2 million metric tons per year (mtpa) of LNG. The move comes as Aramco looks to expand its footprint in the growing global LNG market. Completing the transaction will allow Commonwealth LNG to move closer to its goal of selling 8 million tons per year from its planned 9.5 mtpa capacity.
Additionally, two sources stated that Aramco is also exploring additional U.S. LNG export opportunities, including Delfin LNG’s proposed 13.2 mtpa floating facility in the Gulf of Mexico, as well as Energy Transfer’s planned Lake Charles project, which aims to produce 16.5 mtpa of LNG.
Recently, Aramco entered several agreements with the US to implement a multifaceted U.S. strategy; anchoring itself in downstream refining, aggressively expanding its LNG reach through supply agreements and equity stakes, and leveraging technology and finance partnerships to modernize and diversify.
