#United States #DOE #Commonwealth LNG #Cameron, Louisiana #LNG export

Commonwealth LNG Achieves Key Regulatory Milestone

Commonwealth LNG, an emerging player in the liquefied natural gas (LNG) industry, has marked a pivotal moment in its journey by securing final non-free trade agreement (non-FTA) export authorization from the U.S. Department of Energy (DOE). This regulatory approval clears the path for the construction of a significant LNG export facility boasting a capacity of 9.5 million tonnes per annum (Mtpa) in Cameron Parish, Louisiana. With this authorization in hand, Commonwealth has positioned itself for a decisive leap forward, with a final investment decision (FID) anticipated later this year, and with first LNG production projected for 2029.

The non-FTA export authorization is notable not just as a piece of regulatory paperwork, but as a cornerstone of Commonwealth's strategic vision. It follows the DOE's earlier conditional approval and bolsters the company’s prospects as it moves toward fulfilling long-term partnerships with global energy purchasers. The company has already secured binding offtake agreements with major players such as Glencore, JERA, and PETRONAS, covering a total of 4 Mtpa, and is in discussions to fill its remaining capacity. This influx of orders and partnerships underscores the growing global demand for liquefied natural gas and Commonwealth's strategic positioning within that dynamic market.

The project is set to bring substantial economic benefits to Louisiana. It is projected to generate an investment of more than $11 billion in the state and potentially yield around $3.5 billion in annual export revenues upon completion. During peak construction, the facility is expected to provide employment for roughly 2,000 workers, alongside approximately 275 permanent jobs once operations commence in late 2029. Thus, the facility could significantly contribute to the local economy, not only by creating jobs but also by supporting ancillary businesses in the region.

Ben Dell, Managing Partner of Kimmeridge and Chair of Caturus, expressed the significance of this regulatory achievement, stating that it marks a “pivotal moment” for Commonwealth. He emphasized that it reflects the company’s commitment to an integrated natural gas strategy that emphasizes low-emission fuels sourced responsibly—demonstrating not only the viability but also the sustainability of the project, which will facilitate the delivery of clean energy to both domestic and international markets.

Commonwealth is also thankful for the diligent process conducted by the DOE leading to this final authorization. As noted by CEO Farhad Ahrabi, with all major regulatory milestones now complete, the company has clear visibility towards executing its final investment decision by the fourth quarter of 2025.

In terms of project implementation, Commonwealth has engaged Technip Energies for engineering, procurement, and construction services. This partnership is expected to play a critical role in erecting what is characterized as a cutting-edge LNG facility that adheres to high safety and environmental standards. The leadership team of Commonwealth LNG is committed to ensuring that the construction and operation of the terminal are aligned with the best practices in energy management, risk mitigation, and environmental stewardship.

As Commonwealth advances towards its first LNG production in 2029, it symbolizes a broader trend in the American energy landscape, showcasing how domestic resources are increasingly being harnessed to meet global energy demands. By leveraging state-of-the-art technology and adhering to rigorous environmental standards, Commonwealth LNG not only aims to be a competitive force in the LNG export market but also aspires to lead in responsible energy stewardship, reinforcing the United States' energy leadership for years to come.