Caturus signs 20-year LNG supply deal with Saudi Aramco

US gas producer Caturus said on Friday its unit, Commonwealth LNG, signed a 20-year agreement to supply 1 million tons per annum of LNG to Saudi Aramco from its proposed Louisiana export project.

The US has been working to cement its position as the world’s biggest exporter of LNG, surpassing previous leaders Qatar and Australia.

The LNG sector has seen a surge in commercial activity since President Donald Trump lifted a pause on new export permits last year.

“This agreement highlights the strong international demand for US LNG and underscores how our longstanding relationships and capabilities position Caturus to serve global markets,” said Caturus CEO David Lawler.

LNG developers typically reach a final investment decision on projects once they have secured enough supply deals to obtain the necessary financing for construction. Commonwealth had said it wants to get to 8 mtpa in offtake to get to FID.

Commonwealth’s Phase 1 development will generate an estimated $3.5 billion in annual export revenue, with operations beginning in 2030, the company said in a statement.

Caturus said Aramco joins a group of companies that have signed long-term contracts with the project, including Glencore, Japan’s biggest power generator JERA, Malaysia’s Petronas, Mercuria and EQT.

Aramco has also been looking to expand its fast-growing portfolio of LNG supply, especially in the United States, where LNG capacity is set to almost double over the next four years.

It has already signed deals with other US players, including NextDecade’s Rio Grande LNG project.