US FERC issues final SEIS for Commonwealth LNG’s project

FERC prepared the final supplemental environmental impact statement to address the July 2024 opinion issued by the United States Court of Appeals for the District of Columbia Circuit regarding the Commission’s environmental review of the Commonwealth LNG project.

The court said that FERC failed to properly assess the cumulative effects of the project’s nitrogen dioxide emissions and remanded the original order granted in 2022 to FERC for further proceedings.

“Commission staff conclude that cumulative modeled National Ambient Air Quality Standards (NAAQS) exceedances for 1-hour NO2 may be significant,” FERC said in the final SEIS issued on Friday.

Also, FERC noted that the supplemental EIS focuses on cumulative air quality impacts and the regulator’s conclusions specific to the project’s NO2 emissions.

For all other environmental resources, FERC’s analysis and conclusions are unchanged from what was presented in the September 2022 final EIS for the project, it said.

“The Commission will take into consideration the analysis and conclusions of the final supplemental EIS in its response to the court,” the regulator said.

Last month, Kimmeridge’s Commonwealth LNG sought expedited final approval from the US FERC as it looks to make a final investment decision on its planned LNG export plant in Louisiana later this year.

In February, Commonwealth said it was targeting FID on its planned 9.5 million tonnes per annum LNG facility in Cameron Parish in September of this year after it received a conditional non-FTA approval from the US DOE.

Mubadala deal

UAE’s Mubadala will take a stake in Kimmeridge’s Commonwealth under a recently revealed deal.

Mubadala signed an agreement with Kimmeridge to acquire a 24.1 percent interest in the latter’s SoTex HoldCo via the issuance of new equity.

SoTex holds two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford in South Texas, and Commonwealth LNG.

In June 2024, Kimmeridge, via its affiliate KTG took a 90 percent stake in Commonwealth.

Before that, Commonwealth closed an investment of development capital from funds managed by Kimmeridge.

The two firms also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply.

SPAs

As per sales and purchase agreements, Commonwealth LNG recently finalized its previously announced long-term agreement with Switzerland-based energy trader Glencore.

Under the binding deal, Glencore will purchase mtpa of LNG for 20 years from Commonwealth LNG, as well as equivalent natural gas supply from KTG under a netback agreement at international prices.

Commonwealth LNG recently also signed a 20-year LNG sales and purchase agreement for 1 mtpa of LNG with an Asian buyer.

On the other hand, Woodside terminated its two LNG sale and purchase agreements with Commonwealth.

The deals were for the supply of up to 2.5 mtpa of LNG over 20 years to Woodside Energy Trading Singapore.