U.S. gas producer Catullus announced Friday that its Commonwealth LNG company has signed a 20-year contract to supply Saudi Aramco with 1 million tons of LNG per year from a proposed export project to Louisiana.
The United States is working to cement its position as the world’s largest LNG exporter, overtaking previous leaders Qatar and Australia.
The LNG sector has seen a surge in commercial activity since President Donald Trump lifted a moratorium on new export licenses last year.
“This agreement highlights the strong international demand for U.S.-produced LNG and emphasizes how our long-standing relationships and capabilities position Catullus to serve global markets,” said David Lawler, CEO of Catullus.
LNG developers typically reach a final investment decision on a project after securing sufficient supply deals to obtain the necessary financing for construction. The Commonwealth had said it wanted to achieve an annual water withdrawal of 8 million tonnes per year to reach the FID.
Last month, Reuters reported on the agreement between Aramco and Commonwealth LNG, citing people familiar with the matter.
Commonwealth’s first phase development will generate an estimated $3.5 billion in annual export revenue and will begin operations in 2030, the company said in a statement.
Katulas said Aramco joins a group of companies that have long-term contracts with the project, including Glencore, Japan’s largest power producer JERA, Malaysia’s Petronas, Mercuria and EQT.
Aramco is also working to expand its fast-growing LNG supply portfolio, particularly in the United States, where LNG capacity is set to nearly double over the next four years.
The company already has contracts with other U.S. companies, including NextDecade’s Rio Grande LNG project. (Reporting by Sumit Saha and Pooja Menon in Bengaluru; Editing by Shailesh Kuber and Krishna Chandra Eluri)
