Sources: Saudi Aramco and Commonwealth LNG in negotiations for an offtake agreement

Four people said that Saudi Aramco, the oil giant, is in discussions with Commonwealth LNG about buying liquefied gas from its proposed Cameron, Louisiana facility. The company wants to improve its market position for super-cooled fuel.

Two people confirmed that the talks concern 2 million tonnes per annum.

Aramco and Commonwealth LNG didn't immediately respond to comments.

If a deal can be reached, Commonwealth LNG will get closer to its goal of selling 8 mtpa of the 9.5 mtpa capacity of the plant. The company currently has four mtpa of signed agreements for sales and purchases, as well as one non-binding heads agreement for 1 mtpa.

Commonwealth LNG is building the United States’ first integrated LNG facility. Its major shareholder Kimmeridge will sell gas from Eagle Ford shale to the plant.

Commonwealth LNG said that it will make a financial decision by the end the year on the construction of Cameron. This could help the U.S. remain the largest LNG exporter in the world.

Aramco is also looking to expand the portfolio of its LNG supplies, which is growing rapidly, particularly in the United States where the LNG capacity will almost double within the next four-years.

Rio Grande LNG, NextDecade and other U.S. companies have already signed agreements with the company.

Aramco, according to two sources, is also considering other U.S. LNG projects, including Delfin LNG's plan to build a 13.2 million tpa floating LNG facility in the Gulf of Mexico and Energy Transfer’s 16.5 million tpa Lake Charles project.

(source: Reuters)