Aramco, the Saudi Arabian oil giant, has secured a long-term supply of liquefied natural gas (LNG) from the U.S., bolstering its global energy portfolio and signaling continued investment in American energy infrastructure. The agreement, finalized on , involves a 20-year contract with Caturus, an independent integrated natural gas and LNG company, for the purchase of 1 million tonnes per annum (Mtpa) of LNG.
The LNG will originate from the Commonwealth LNG export facility currently under development in Cameron Parish, Louisiana. Caturus CEO David Lawler highlighted the deal as evidence of “the strong international demand for U.S. LNG” and Caturus’s ability to serve global markets through its established relationships and capabilities. The agreement underscores the growing importance of the U.S. As a key LNG exporter, particularly as global demand for natural gas continues to rise.
Aramco Trading, a subsidiary of Saudi Aramco, will be the direct purchaser of the LNG under the Sale and Purchase Agreement (SPA). Mohammed K. Al Mulhim, Aramco Trading President & CEO, stated the contract reflects the company’s efforts “to secure a reliable, long-term energy supply for global markets while strengthening our presence in the LNG sector.” He further emphasized the deal’s contribution to diversifying supply sources and enhancing energy security.
This deal is a significant step forward for Commonwealth LNG, bringing the project closer to a final investment decision (FID). The company is actively working to secure remaining capacity for the facility, which is designed to have a Phase 1 capacity of 9.5 million tonnes per year. Commonwealth LNG already has long-term offtake contracts in place with a diverse group of international energy companies, including Glencore, JERA, PETRONAS, Mercuria and EQT.
The project is expected to generate an estimated $3.5 billion in annual export revenue and create approximately 2,000 jobs during the peak of construction. Once operational, anticipated in , the facility will provide around 300 full-time jobs. Recent purchase orders authorized in December 2025, executed through Commonwealth’s engineering, procurement, and construction partner Technip Energies, indicate progress towards FID. These orders cover long-lead-time equipment, including mixed-refrigerant compressors from Baker Hughes, cryogenic heat exchangers from Honeywell, and gas turbine-generators from Solar Turbines.
The agreement with Aramco Trading potentially includes an option for the Saudi company to double its offtake to 2 million metric tons annually, according to reports. This potential expansion highlights Aramco’s confidence in the long-term viability of the Commonwealth LNG project and the increasing demand for LNG in global markets.
The broader context of this deal lies within the increasing global focus on energy security and diversification of supply. Geopolitical factors, including the war in Ukraine, have underscored the vulnerability of relying on single energy sources and have prompted countries to seek alternative suppliers. The U.S., with its abundant natural gas reserves and expanding LNG export capacity, is well-positioned to capitalize on this trend.
Aramco’s investment in U.S. LNG aligns with Saudi Arabia’s broader energy strategy, which aims to balance its traditional role as a major oil producer with a growing focus on natural gas and renewable energy sources. The company is actively investing in LNG projects globally to meet rising demand and diversify its energy offerings. This deal also strengthens the economic ties between the U.S. And Saudi Arabia, two key players in the global energy market.
The Commonwealth LNG project represents a significant investment in U.S. Energy infrastructure and is expected to contribute to the country’s economic growth. The project’s modular design approach, coupled with the recent equipment purchase orders, suggests a commitment to efficient and timely construction. Securing a final investment decision in the first quarter of , as anticipated, will be a crucial milestone for the project and will pave the way for its eventual operation.
The LNG market has experienced significant volatility in recent years, driven by factors such as supply disruptions, geopolitical tensions, and fluctuating demand. However, the long-term outlook for LNG remains positive, with demand expected to continue growing as countries transition towards cleaner energy sources and seek to reduce their reliance on coal. Deals like the one between Caturus and Aramco Trading demonstrate the continued attractiveness of U.S. LNG as a reliable and competitive energy source.
