Saudi Aramco is in negotiations with Commonwealth LNG to purchase liquefied natural gas (LNG) from the U.S. company's proposed export terminal in Cameron, Louisiana, as the Saudi oil giant moves to strengthen its foothold in the global LNG market, according to four people familiar with the discussions.

The deal under discussion would involve 2 million tons per annum (mtpa) of LNG, two of the sources said. If finalized, it would mark a significant step for Commonwealth LNG toward selling out the planned capacity of its Gulf Coast project.

Neither Aramco nor Commonwealth LNG immediately responded to requests for comment.

A potential agreement with Aramco would help Commonwealth LNG close in on its goal of securing commercial commitments for 8 mtpa out of the terminal’s total design capacity of 9.5 mtpa. To date, the company has signed firm sales and purchase agreements (SPAs) totaling 4 mtpa, along with a non-binding heads of agreement for an additional 1 mtpa.

The proposed facility in Cameron Parish is notable for its integrated model: Commonwealth LNG’s major shareholder, private equity firm Kimmeridge Energy, plans to supply natural gas directly from its Eagle Ford shale production in Texas to the liquefaction plant. This vertically integrated approach aims to improve cost competitiveness and supply certainty.

Commonwealth LNG has publicly stated it hopes to reach a final investment decision (FID) on the project by the end of the year. A positive FID would advance construction of one of several planned U.S. LNG export terminals, reinforcing the country’s role as the world’s largest LNG exporter.

For Aramco, the talks with Commonwealth LNG reflect its accelerating strategy to build a diversified and resilient LNG supply portfolio—particularly in the United States, where LNG export capacity is projected to nearly double over the next four years.

Aramco has already taken concrete steps to expand its presence in U.S. LNG. In 2023, it signed a 20-year agreement with NextDecade to purchase LNG from the Rio Grande project in Texas. Industry observers see these moves as part of Aramco’s broader effort to secure long-term LNG supply for customers in Asia and Europe, where demand for the cleaner-burning fuel continues to grow.

Sources also told Reuters that Aramco is reviewing other U.S. LNG opportunities, including Delfin LNG, which plans to develop a 13.2 mtpa floating LNG facility in the Gulf of Mexico, and Energy Transfer’s proposed 16.5 mtpa Lake Charles LNG export terminal in Louisiana.

The expansion of Aramco’s LNG business is part of its long-term strategy to diversify beyond crude oil and strengthen its position in the evolving global energy market. By securing long-term LNG contracts in the United States—a country rapidly increasing its liquefaction capacity—Aramco aims to offer customers reliable, flexible energy supply options well into the future.