Saudi Aramco to Sign US LNG Agreements During Crown Prince’s Visit to Washington, Sources Say photo

LONDON, Nov 14 (Reuters) – Saudi Aramco is planning 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, according to sources.

As the largest oil exporter in the world, Saudi Aramco aims to significantly expand its LNG presence, particularly in the United States, where LNG capacity is expected to nearly double in the next four years. The company has already made deals with other U.S. firms, including NextDecade's Rio Grande LNG.

Aramco aims for a total LNG capacity of 20 million tons per year, with 4.5 million tons currently under development, as stated by CEO Amin Nasser in an analyst call in August.

Shell, the largest LNG trader globally, sold about 66 million tons last year.

Sources indicate that Aramco is likely to secure up to 2 million tons per year of LNG supply from Commonwealth LNG's proposed facility in Cameron, Louisiana.

Additionally, a partnership with Woodside is anticipated where Aramco would purchase a stake in Woodside's $17.5 billion LNG project in Louisiana and reach an agreement to obtain up to 2 million tons per year of LNG supply, according to several industry insiders.

Aramco did not provide any comments on the matter. Woodside stated it does not engage in market speculation but referred to a previous agreement to explore potential collaborations with Aramco. A response from Commonwealth LNG was not immediately available.

The agreement would aid Commonwealth LNG in reaching its goal of selling 8 million tons per year from a total capacity of 9.5 million tons at the plant.

Commonwealth LNG is working on the U.S.’s first integrated LNG export facility, which will enable its major shareholder, Kimmeridge, to supply gas from its Eagle Ford shale production to the plant. A financial decision regarding the plant's construction is expected by the end of the year.

In April, Woodside received final approval for its project—a three-train facility expected to produce 16.5 million tons per year of LNG, with operations slated to begin in 2029.