Aramco reportedly targeting 10 mtpa of US LNG in global gas strategy

Aramco is reportedly considering strengthening its presence in the US liquefied natural gas (LNG) sector by finalising potential offtake agreements and equity positions with Commonwealth LNG and Louisiana LNG, Reuters reported. If concluded, the combined volumes would reach approximately ten million tonnes per annum (mtpa), representing half of the twenty mtpa portfolio target declared by Chief Executive Officer Amin Nasser.

Modular projects under consideration in Louisiana

According to Reuters, Aramco is in advanced discussions to secure up to 2 mtpa from Commonwealth LNG, which is developing a 9.5 mtpa terminal in Cameron. The site would include six modular trains and has already received regulatory approvals from the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE), becoming the first post-pause project cleared by US authorities. The offtake volumes under discussion would add to those already contracted by Kimmeridge Texas Gas and Glencore, bringing the project close to its financial investment decision threshold.

Aramco is also reportedly negotiating a similar agreement with Louisiana LNG, operated by Woodside Energy. Reuters noted that the deal could include a minority equity interest and a long-term offtake of 2 mtpa. The terminal, which received a final investment decision in the spring, is targeting an initial capacity of 16.5 mtpa, supported by a lump-sum EPC contract with Bechtel.

A strategic anchor in the US pending confirmation

These negotiations would align with Saudi Arabia’s broader objective of deepening its energy ties with the United States. Reuters indicated that the agreements may coincide with a high-level visit by the Crown Prince to Washington, lending political weight to the potential transactions. For Aramco, US LNG projects offer access to a competitive, deregulated liquefaction environment, especially in the aftermath of the recent federal policy reset in favour of exports.

Aramco’s possible expansion in the US LNG market would coincide with Europe’s progressive phase-out of Russian LNG imports by 2027, opening a structural supply gap. The prospective American volumes could provide a complementary tool to the domestic gas developments at Jafurah by offering sanction-resilient options to Asian and European buyers.

Positioning for a global LNG oversupply cycle

Global export capacity is expected to outpace demand growth by the end of the decade, according to several forecasts cited by Reuters. North America would account for a significant share of the new volumes, while US liquefaction assets are increasingly becoming the core of global LNG liquidity. Aramco’s strategy would focus on aligning with the lowest-cost infrastructure to secure resilience during a potential margin compression phase post-2028.

For Commonwealth LNG, Aramco’s potential involvement as a key offtaker would strengthen the project’s credit profile. For Woodside, the addition of Aramco as an investor or long-term buyer would broaden its commercial base beyond Asia and reinforce the project’s viability in a market increasingly reliant on portfolio players capable of managing price volatility.