#United States #Commonwealth LNG #LNG Agreement #Asian Energy #Cameron

Commonwealth LNG Secures Long-Term Contract with Major Asian Buyer

In a strategic move to enhance its footprint in the liquefied natural gas (LNG) market, Commonwealth LNG recently announced that it has entered into a Sale and Purchase Agreement with a prominent energy company in Asia. This contract, set to span two decades, involves the delivery of one million tonnes per annum (mtpa) of LNG from Commonwealth's upcoming 9.5 mtpa export facility currently under construction in Cameron, Louisiana.

The significance of this agreement cannot be overstated. According to Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, this momentous deal represents another pivotal achievement for Commonwealth LNG as it progresses towards making a final investment decision later this year, with initial deliveries slated for 2029. Dell expressed enthusiasm for collaborating with the buyer, highlighting their established role as a leader in the LNG supply chain.

Economic Impact in Louisiana

The phase one development of the Commonwealth LNG project is expected to attract over $11 billion in investments in Louisiana, bolstering the regional economy. The project is predicted to generate around $3.5 billion in annual export revenue and provide employment opportunities for approximately 2,000 construction workers at its peak. Additionally, when operations commence in late 2029, about 275 high-paying permanent jobs will be created.

This Asian buyer stands as one of the leading global energy corporations, boasting a comprehensive operation in the oil and gas sector from upstream exploration to downstream sales. Notably, they are recognized as one of the largest suppliers of LNG globally.

Commitment to Sustainability and Efficiency

Farhad Ahrabi, President and CEO of Commonwealth, emphasized the importance of fostering a strong, mutually beneficial partnership with the Asian buyer. He reiterated the company's commitment to establishing a well-governed, efficient, and reliable LNG operating entity, focused on delivering LNG to critical markets around the globe.

Commonwealth LNG, through its parent company Kimmeridge SoTex Holdco LLC, is also committed to innovating within the energy sector. Kimmeridge, established in 2012, concentrates on direct investments within the energy industry complemented by extensive technical expertise and active portfolio management.

As the agreement becomes effective contingent on satisfying standard conditions, including a favorable final investment decision, Commonwealth LNG appears poised for significant growth in the expanding global LNG market. With the project situated on the Gulf Coast's Calcasieu River, Commonwealth LNG aims to build a state-of-the-art facility that embodies safety, efficiency, and cost-effectiveness while responding to the rising demand for responsibly produced LNG.

With ambitions of moving towards a well-integrated gas supply chain from wellhead to market, Commonwealth's project is expected to redefine the LNG landscape significantly. As the company gears up for the future, the cooperation with the Asian buyer presents exciting opportunities for expanding LNG accessibility and meeting global energy demands responsibly.