Saudi-us LNG Offtake Agreements: How Aramco Is Locking in American Gas Supply With Smart Deals

A key piece of this strategy is turning preliminary deals into firm barrels-equivalent of LNG supply. Energy Intelligence said Aramco has a firm 20-year sales and purchase agreement for 1.2 million tons per year of offtake from Train 4 of NextDecade’s Rio Grande project in Texas. Separately, it has a heads of agreement for a 25% stake in Sempra’s Port Arthur Phase 2 LNG project in Texas, alongside 5 million tons per year of offtake. Oil & Gas Middle East noted that deliveries under the Rio Grande contract would begin at substantial completion, which NextDecade expects in the second half of 2030.

Why Aramco Prefers US LNG: Flexible Terms, Big Volumes, and Optionality

The US focus is also about building scale fast with contract structures Aramco views as attractive. Energy Intelligence said the US, which offers flexible LNG contract terms, will play a leading role in meeting Aramco’s portfolio goal; if various preliminary agreements come to pass, Aramco would hold stakes in and/or offtake from five US export projects. That same report said that if Aramco advanced volumes discussed with Woodside and pursued similar volumes from Commonwealth LNG, it could be positioned to hold over 10 million tons per year, or 1.4 Bcf/d, of US LNG supplies. It also described how Aramco aims to rely on domestic supplies to replace crude oil for power generation while sourcing LNG exposure abroad.

Commonwealth LNG has become one of the clearest examples of the offtake-first approach. Oil & Gas Middle East reported that Aramco signed a long-term agreement with Commonwealth LNG to supply 1 million metric tonnes per annum, with an option to double volumes to 2 mtpa. AGBI also said the latest agreement was with Commonwealth LNG to receive 1 mtpa initially, citing Reuters. Oil & Gas Middle East added that Commonwealth’s largest shareholder, Kimmeridge, plans to supply natural gas from its Eagle Ford shale production to the facility. The same source said Commonwealth aims to sell 8 mtpa of capacity ahead of construction and is targeting the end of the first quarter to reach a positive final investment decision.

These LNG moves sit inside a broader US commercial surge that Aramco and Saudi Arabia have tied to high-level diplomacy. AGBI said that, last year, two Louisiana LNG projects—one with Commonwealth LNG and another with MidOcean—were among 51 memoranda of understanding signed with US companies, with combined potential value of $120 billion, according to Aramco. Energy Intelligence also linked the LNG announcements to a wider set of US-Saudi corporate deals, including figures of $270 billion announced in a single week and a $1 trillion trade and investment pledge, while noting that LNG deal details were sometimes sparse. In parallel context, Energy Intelligence data showed Saudi oil volumes through the southern Red Sea were down 85% over the past two weeks, highlighting a volatile trade backdrop as Aramco expands options in gas.