Commonwealth LNG Partners with JERA for Long-Term LNG Supply in Japan

Commonwealth LNG Forms Strategic Alliance with JERA for LNG Supply

In a significant move for the global energy market, Commonwealth LNG announced a substantial 20-year Sale and Purchase Agreement with JERA Co., Inc., Japan's leading power generation company. This partnership involves JERA purchasing one million tonnes per annum of liquefied natural gas (LNG) from Commonwealth's developing facility in Cameron, Louisiana.

The agreement accelerates Commonwealth's plans to finalize its commercial endeavors, aiming for a final investment decision by Q3 2025. Once operational, the facility is projected to produce its first LNG by 2029. Commonwealth has already secured long-term agreements for 4 million tonnes per annum offtake, aligning with its strategic vision for growth in the LNG market.

Ben Dell, Managing Partner of Kimmeridge, expressed enthusiasm for the partnership, emphasizing JERA’s dual commitment to energy affordability and environmentally responsible practices. “We look forward to our partnership with JERA, a recognized global energy leader who shares our commitment to low-cost energy with the lowest carbon footprint,” Dell stated.

The Cameron LNG export facility represents a substantial economic investment, estimated to unlock around $11 billion in total investments within Louisiana. Furthermore, it anticipates generating approximately $3.5 billion in annual export revenue, which is poised to create around 2,000 jobs during construction and about 275 permanent, high-paying positions once operations commence in 2029.

Farhad Ahrabi, President and CEO of Commonwealth LNG, highlighted JERA's extensive experience across the LNG value chain as a pivotal asset. “We are delighted to be collaborating with a prominent company like JERA as we advance toward final investment and commercial operations,” Ahrabi noted.

This agreement is pivotal as it positions Commonwealth LNG at the forefront of the LNG supply market, particularly in Asia-Pacific, where demand for cleaner energy sources is surging. The company's parent firm, Kimmeridge SoTex Holdco LLC, is committed to responsible energy production, striving for a holistic approach from the wellhead to the water. This project not only aims to fulfill growing global LNG demand but also focuses on maintaining environmental integrity throughout the operations.

The Sale and Purchase Agreement (SPA) is contingent upon satisfying standard conditions, including a final investment decision on the project. As Commonwealth LNG aims to establish itself as a critical player in the LNG landscape, this collaboration with JERA signifies a positive step toward meeting the evolving energy needs of both countries involved.

For further information regarding Commonwealth LNG and its projects, stakeholders and interested parties are encouraged to visit their website. The strategic partnership marks not just an economic milestone but also a trajectory towards a sustainable energy future and a collaborative effort in lowering carbon emissions globally.

About Commonwealth LNG

Commonwealth LNG is focused on building a state-of-the-art LNG export terminal with a capacity of 9.5 million tonnes per annum located in Cameron, Louisiana. The project aims to adhere to the highest safety standards while also achieving best-in-class environmental practices. The leadership team is committed to navigating the complexities of the energy landscape while remaining dedicated to responsible energy production and management strategies.