Commonwealth LNG has announced a 20-year sale and purchase agreement (SPA) with a prominent Asian energy corporation.
The deal involves the purchase of one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Commonwealth’s 9.5mtpa LNG facility under development in Cameron, Louisiana, US.
The Asian buyer, a major player in the global energy market, is involved extensively across the oil and gas value chain.
The SPA’s full effectiveness is contingent upon meeting customary conditions including a final investment decision (FID) on the project.
Commonwealth chairman and managing partner of Kimmeridge Ben Dell said: 鈥淭his offtake agreement marks another important milestone for Commonwealth as we work toward a final investment later this year and the first offtake planned for 2029.
鈥淲e look forward to working with this buyer, a long-standing leader in LNG, as we further our integrated wellhead-to-water strategy in delivering LNG to critical markets around the world.鈥�
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By GlobalDataPhase one of the LNG project is set to inject more than $11bn into Louisiana’s economy and is projected to generate around $3.5bn in annual export revenue.
At the height of its construction phase, the facility is expected to employ roughly 2,000 workers and offer approximately 275 high-paying jobs upon commencement of operations in late 2029.
Commonwealth is owned by Kimmeridge SoTex Holdco, a subsidiary of Kimmeridge, an asset manager dedicated to the energy sector.
Kimmeridge SoTex Holdco also owns Kimmeridge Texas Gas, an upstream natural gas development company.
Through these entities, Kimmeridge is establishing the US’ first integrated gas independent, aiming to deliver cost-effective natural gas and cater to the increasing global demand for responsibly produced LNG.
In related news, Petronas is reportedly in advanced talks with Commonwealth LNG to secure a long-term LNG supply from the same Louisiana facility, with discussions revolving around a minimum supply of 1mtpa.
