Caturus has entered into a 20-year sale and purchase agreement (SPA) for its Commonwealth LNG project in the US with Aramco Trading, a subsidiary of Saudi Arabia’s Aramco.
The agreement involves the purchase of one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the Commonwealth LNG export facility. The midstream asset is being developed in Cameron Parish, Louisiana, on the Gulf Coast.
Commonwealth LNG is a liquefaction and export facility with a capacity of 9.5mtpa on the west side of the Calcasieu Ship Channel.
The facility will feature five storage tanks, each with a capacity of 50,000m³. It will be capable of receiving vessels as large as 216,000m³.
The gas supply will come through a newly built 4.8km-long pipeline that connects to two major pipeline networks with ample excess transportation capacity.
Caturus CEO David Lawler said: “We are 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 US LNG and underscores how our long-standing 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.”
The Commonwealth LNG project is moving closer to a final investment decision (FID), aiming to secure the rest of its capacity.
The SPA requires the fulfilment of customary conditions including a positive FID regarding the project before becoming fully effective.
Aramco Trading is set to join other international energy companies like Glencore, Jera, Petronas, Mercuria and EQT in securing long-term offtake contracts with the LNG project.
Aramco Trading president and CEO Mohammed K. Al Mulhim said: “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.”
The first phase of Commonwealth LNG’s development is projected to generate approximately $3.5bn in annual export revenue.
At its construction peak, the project will employ around 2,000 workers and create roughly 300 full-time jobs once operational, which is expected by 2030.
Technip Energies has been engaged to provide engineering, procurement and construction services for the development.
