#USA #Natural Gas #Commonwealth LNG #Petronas #Cameron, Louisiana

Commonwealth LNG Signs Long-Term Agreement with PETRONAS

On June 17, 2025, Commonwealth LNG announced a strategic partnership with PETRONAS, a prominent subsidiary of Malaysia's national oil and gas company. This partnership is built around a significant sale and purchase agreement that will facilitate the transfer of 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) over a 20-year period from Commonwealth’s developing facility in Cameron, Louisiana.

Commonwealth’s LNG project is poised to establish itself as a major player in the global LNG market, with an anticipated capacity of 9.5 MTPA. Currently, 4 MTPA is already secured under long-term contracts. The company aims to finalize its commercial agreements ahead of a crucial final investment decision targeted for the third quarter of 2025, with production expected to kick off in 2029.

Farhad Ahrabi, President and CEO of Commonwealth LNG, expressed enthusiasm regarding this collaboration, stating, “Working with PETRONAS, a highly regarded LNG supplier with extensive experience, represents a significant milestone for our project. We greatly appreciate this partnership and the confidence shown in our team by an industry leader.”

In alignment with this, Shamsairi M Ibrahim, Vice President of LNG Marketing and Trading at PETRONAS, emphasized that this agreement reflects their commitment to establishing enduring global partnerships. He underscored PETRONAS’ objective of ensuring a reliable and sustainable LNG supply to meet the increasing demands of their customers. The collaboration with Commonwealth LNG will further augment PETRONAS’ supply network and bolster its footing in the competitive LNG sector.

The initial phase of Commonwealth’s project is expected to contribute over $11 billion in investment to Louisiana’s economy, potentially generating around $3.5 billion in annual export revenue. At the peak of construction, about 2,000 job opportunities will be available, and roughly 275 stable, high-paying jobs will be created once the facility becomes operational in late 2029.

Commonwealth LNG is under the ownership of Kimmeridge SoTex Holdco LLC, a firm specializing in energy sector investments. Kimmeridge is dedicated to establishing a complete gas production chain in America, capable of delivering low-cost natural gas and meeting the increasing global demand for responsibly sourced LNG.

This sale and purchase agreement will take effect once the standard conditions, including a positive final investment decision on the project, are fulfilled.

About Commonwealth LNG

Commonwealth LNG is spearheading the development of a new LNG export terminal, strategically located on the Calcasieu River in Louisiana. Their focus is on constructing a top-tier facility while emphasizing cost management and risk mitigation to ensure project success.

About PETRONAS

PETRONAS is a worldwide leader in the energy sector, operating in over 100 nations, and committed to delivering sustainable and reliable energy solutions through its comprehensive LNG value chain.

About Kimmeridge

Founded in 2012, Kimmeridge operates as an alternative asset manager with a focus on the energy sector, distinguished by its investment strategy, technical expertise, and proactive portfolio management.

For further details, visit Commonwealth LNG’s website or PETRONAS.