Caturus Secures 20-Year LNG Offtake Agreement with Aramco Trading for Louisiana Export Facility

The recently signed Sale and Purchase Agreement between Caturus and Aramco Trading Americas LLC establishes a substantial 20-year commitment for the supply of liquefied natural gas. Specifically, Aramco Trading will acquire 1 Mtpa of LNG from the Commonwealth LNG export facility, which is strategically located on the U.S. Gulf Coast in Cameron Parish, Louisiana. This agreement is a pivotal development for the Commonwealth LNG project, which is currently under development and is slated to begin operations in 2030, contingent upon the satisfaction of customary conditions, including an affirmative final investment decision (FID).

This long-term offtake contract highlights the increasing global reliance on U.S. LNG exports, reinforcing the Gulf Coast's position as a critical hub for international energy supply. Caturus CEO David Lawler emphasized that the agreement reflects strong international demand for U.S. LNG, showcasing the company's capabilities in serving global markets through its integrated "wellhead to water" services. The deal not only secures a significant portion of the Commonwealth LNG facility's future output but also validates the project's commercial viability as it moves closer to its FID.

For Aramco Trading, the subsidiary of Saudi Aramco, this agreement represents a strategic move to enhance its presence in the global LNG sector and diversify its energy supply portfolio. Mohammed K. Al Mulhim, Aramco Trading President & CEO, stated that the contract with Commonwealth LNG allows them to strengthen energy security and deliver value across the entire energy chain by securing a reliable, long-term energy supply for global markets. This diversification is particularly noteworthy for a company traditionally associated with crude oil, signaling a broader strategic pivot towards natural gas and LNG within the global energy landscape.

The Commonwealth LNG project, with a total planned capacity of 9.5 Mtpa, is actively advancing towards its final investment decision, with Caturus indicating line of sight to secure its remaining capacity. Aramco Trading joins a distinguished group of international energy companies that have already entered into long-term offtake contracts with the platform, including Glencore, JERA, PETRONAS, Meruria, and EQT. This collective commitment from diverse global players underscores the project's attractiveness and the perceived stability of U.S. LNG as a long-term energy solution.

Beyond its strategic energy implications, the Commonwealth LNG project is poised to deliver substantial economic benefits to the region. The Phase 1 development is projected to generate an estimated $3.5 billion in annual export revenue, providing a significant boost to the local and state economies. Furthermore, the construction phase is expected to create approximately 2,000 jobs at its peak, followed by around 300 full-time operational positions once the facility commences operations in 2030. Technip Energies, a recognized leader in modular engineering and LNG project delivery, is providing the crucial engineering, procurement, and construction services for the facility.

Caturus itself is structured as an integrated natural gas and LNG company, combining Caturus Energy, an upstream producer with over 600 MMcfe/d across approximately 250,000 net acres in Texas, with the Commonwealth LNG export terminal. This integrated model allows Caturus to offer a comprehensive "wellhead to water" service, emphasizing the delivery of responsibly sourced, low-emission fuel to both domestic and international markets. The company's focus on environmental standards and risk management is a key aspect of its project development strategy for the Louisiana facility.

Looking ahead, the primary signal to watch will be the final investment decision for the Commonwealth LNG project. The full effectiveness of the SPA with Aramco Trading, along with other existing agreements, is contingent upon this critical milestone. Continued progress in securing the remaining capacity and the commencement of construction activities will be key indicators of the project's trajectory towards its anticipated operational start in 2030.