Commonwealth LNG announced that they have signed a deal with Aramco Trading to supply LNG for 20 years. Commonwealth LNG is a subsidiary of Caturus and Aramco Trading is subsidiary of Saudi Aramco. Under this Sale Purchase Agreement (SPA), Aramco Trading will import 1 million tonnes per anum of LNG from Commonwealth LNG at its export facility which is currently under construction at Gulf Coast in Cameron Parish, Louisiana. Aramco Trading has an option to double this deal upto two million tonnes per anum of LNG supply from Caturus.
Key Breakdown:
| Feature | Details |
| Parties | Caturus (via Commonwealth LNG) & Aramco Trading Americas LLC |
| Volume | 1 Million Tonnes per Annum (Mtpa) |
| Duration | 20-Year Sale and Purchase Agreement (SPA) |
| Facility Location | Cameron Parish, Louisiana (U.S. Gulf Coast) |
| Operational Date | Estimated 2030 |
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| Image Courtesy: Gemini |
"We're pleased to welcome Aramco Trading among an expanding group of prominent international customers who have entered into offtake contracts from the Commonwealth LNG facility. This agreement highlights the strong international demand for U.S. LNG and underscores how our longstanding relationships and capabilities position Caturus to serve global markets.Our contract with Aramco Trading underscores the differentiated value Caturus can bring through our global reach in offering wellhead to water services. " said Caturus CEO David Lawler.
"This agreement reflects Aramco Trading's efforts to secure a reliable, long-term energy supply for global markets while strengthening our presence in the LNG sector. Our contract with Commonwealth LNG allows us to diversify supply sources, strengthen energy security, and deliver value across the entire energy chain." said Mohammed K. Al Mulhim, Aramco Trading President & CEO.
Technip Energies is expert in EPC (Engineering, Procurement, and Construction) contracts. It is handling this development of LNG project of Commonwealth LNG. The phase 1 development has capacity of $3.5 billion dollar annually. This project will generate 2000 jobs under its peak condition and 300 permanent jobs will be there when it is in running condition.
Impact of this deal:
This deal is not just buying gas, this shows Saudi Aramco presence in global market of LNG supply. Now a days world is changing from tradition energy sources to clean and green energy sources, so the demand of U.S natural gas will increase.
The investors, businesses, and contractors of this LNG field should follow-up and have a look on small contracts based on this huge 20-years deal. This deal will make a lot of opportunities in logistics sectors.
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