Caturus signs a 20-year LNG Supply Deal with Saudi Aramco

U.S. Gas Producer 'Caturus' said on Friday that its unit, Commonwealth LNG, had signed a twenty-year agreement with Saudi Aramco to supply 1,000,000 tonne per year of lNG from?its proposed Louisiana Export Project.

The U.S. is working hard to surpass Qatar and Australia as the largest LNG exporter in the world.

Since President Donald Trump lifted the pause on export permits last summer, commercial activity in the LNG sector has risen.

Caturus CEO David Lawler said, "This agreement highlights the strong demand for U.S. Liquefied Natural Gas (LNG) in international markets and shows how our 'longstanding relationships' and capabilities enable Caturus serve global markets."

LNG developers usually reach a final decision on a project once they have secured sufficient supply deals to get the financing needed for construction. Commonwealth has said that it needs to reach 8 mtpa of offtake in order to make a final investment decision.

Sources reported last month that Aramco had signed a deal with Commonwealth LNG.

Commonwealth said that Phase 1 will generate an estimated $3.5billion in export revenue annually, and operations would begin in 2030.

Caturus?said Aramco is joining a group that has signed?long term contracts?with this project. This includes Glencore, Japan's largest power generator JERA and Malaysia's Petronas. Mercuria, EQT, and Malaysia's Petronas are also part of the group.

Aramco is also looking to expand their 'fast-growing portfolio of gas supply, particularly in the United States where the LNG capacity will 'almost double within the next four years.

The company has signed deals with several other U.S. companies, including NextDecade’s Rio Grande LNG Project. Reporting by Sumit S. Saha in Bengaluru and Pooja M. Menon; Editing by Shailesh K. Kuber and Krishna Chandra Eluri

(source: Reuters)