Saudi Aramco signed a long-term supply deal with Commonwealth LNG, Reuters has reported, citing unnamed sources in the know. The size of the annual shipments will be 1 million tons.
The Cameron, Louisiana, facility will have a nameplate annual capacity of 9.5 million tons of liquefied gas. Originally, the plant was supposed to be up and running by 2027, but the developer said last year it would have to delay the start date to 2031.
The company blamed the temporary ban on new liquefied natural gas capacity that the Biden administration imposed on the industry in its final year, following a report by an environmentalist that claimed LNG is more harmful than coal for the atmosphere. The Trump administration lifted the ban, but not soon enough.
Reports about Aramco’s interest in the Louisiana project, which will use gas from the Eagle Ford shale basin, first emerged last year. The initial amount mentioned in those reports was 2 million tons annually as the Saudi company aims to develop a significant presence in LNG trading, especially in the United States.