Commonwealth LNG, producer of liquefied natural gas (LNG) based in the United States, announced the signing of a 20-year purchase and sale contract with a leading Asian energy company. Under the terms of the agreement, the buyer undertakes to buy 1 million tonnes per year from LNG from the Commonwealth LNG terminal currently in development in Cameron, Louisiana. The total installation capacity is planned at 9.5 million tonnes per year.
An investment of $ 11 billion planned in Louisiana
The first phase of the project provides for an investment above $ 11 billion (around € 10.25 billion) in the state of Louisiana. This development is expected to generate around $ 3.5 billion (around € 3.26 billion) in annual export income after operational installation. The site is expected to mobilize around 2,000 workers at the peak of its construction, with 275 permanent jobs created when entering service scheduled for 2029.
This contract marks a strategic advance for Commonwealth LNG in its final investment process, which was later expected in 2025. “This kidnapping agreement represents an important step for Commonwealth,” said Ben Dell, director of Kimmeridge and Chairman of the Commonwealth Board.
A long -term partnership with a global LNG player
The buyer, whose name has not been disclosed, is one of the main world providers of LNG and operates on the entire oil and gas value chain, from exploration to distribution. This collaboration strengthens Commonwealth’s strategy aimed at directly connecting upstream gas downstream, in particular for Asian markets.
“We are delighted to develop this long-term partnership,” said Farhad Ahrabi, CEO of Commonwealth LNG. The company is owned by Kimmeridge Sotex Holdco LLC, a entity founded by asset manager Kimmerridge, specialized in the energy sector.
An integrated model from the well to the terminal
Kimmeridge develops, through its Sotex subsidiary, an integrated model called “water well” by also exploiting an upstream company, Kimmeridge Texas Gas. The objective is to provide low cost LNG in response to growing demand in international markets. The agreement will become effective after the satisfaction of usual conditions, in particular the final investment decision on the project.
