Aramco to take stake in Woodside’s $17.5 billion Louisiana LNG project

November 18, 2025

Saudi giant also sets sight on volumes from Commonwealth LNG

Aramco is expected to sign two more major US liquefied natural gas deals during Saudi Crown Prince Mohammed bin Salman’s visit this week to Washington DC.

The Saudi giant — the world’s largest oil exporter — is expected to sign an agreement to acquire equity in, and offtake volumes from, Woodside Energy’s under-construction 16.5 million tonnes per annum Louisiana LNG, Reuters reported, quoting multiple sources familiar with the matter. Aramco is expected to agree to take up to 2 million tpa of LNG from this greenfield project.

Australian operator Woodside in late April took the final investment decision for the US$17.5 billion Louisiana LNG project, which is targeting production start-up in 2029. The following month Aramco and Woodside entered into a non-binding collaboration agreement to explore the Saudi company’s potential acquisition of equity in, and offtake from, the Louisiana LNG project.

Woodside chief executive Meg O’Neill at the time said: “This collaboration aligns with Woodside’s strategic vision to build a diverse and resilient global portfolio.

“It leverages our growing relationship with one of the world’s leading integrated energy and chemicals companies to explore new opportunities which deliver value for both parties.”

Aramco is also expected to sign a contract to purchase up to 2 million tpa from the 9.5 million tpa Commonwealth LNG, an export project on the US Gulf coast near Cameron, Louisiana.

Commonwealth LNG is expected before year-end to take FID on its namesake liquefaction project. The US’ Federal Energy Regulatory Commission (FERC) in late October granted the Kimmeridge-operated Commonwealth a four-year extension until 31 December 2031 to construct the facility and bring it into service.

Lofty ambition

Aramco has set its sights on becoming a major LNG player, particularly in the US, and is targeting annual capacity of 20 million tonnes. The company already has a deal to buy volumes from NextDecade’s Rio Grande liquefaction project.

NextDecade in April executed a 20-year LNG sale and purchase agreement with an Aramco subsidiary for 1.2 million tpa of LNG from Train 4 at Rio Grande on a free-on-board basis, at a price indexed to Henry Hub, subject to FID being taken on Train 4. The operator subsequently in September sanctioned Train 4.

NextDecade believes this train reached substantial completion in the second half of 2030, at which point it will also deliver the first of its contracted volumes.

Upstream has approached Woodside, Aramco and Commonwealth LNG for comment.

Source: Upstream