Commonwealth LNG has entered into a deal with OnStream CO2 for a carbon capture and storage solution at its 9.3 mtpa LNG facility under development in Cameron, Louisiana.
OnStream CO2 is a joint venture between Carbonvert and Castex Carbon Solutions.
Under the memorandum of understanding, OnStream CO2 will design, construct, own, and operate carbon dioxide (CO2) capture equipment near the Commonwealth LNG site, according to a statement by the US LNG developer.
The captured CO2 will be permanently sequestered at the Cameron Parish CO2 hub, while Commonwealth LNG will dedicate CO2 emitted from the LNG facility for a 20-year term.
The Carbonvert-Castex joint venture recently announced an operating agreement with Louisiana to develop a 24,000-acre tract of land offshore Cameron Parish, where it will permanently store CO2 in a hub with capacity for more than 250 million metric tons.
Final terms of the carbon capture arrangement remain subject to negotiation of a definitive agreement between the parties, Commonwealth LNG said.
“Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest efficiency gas turbines,” Commonwealth LNG founder and executive chairman, Paul Varello, said.
FID expected in H1 2024
Commonwealth LNG said it expects a final investment decision on its LNG project in the first half of 2024, with first cargo deliveries expected in 2027.
The firm said in September when its signed a preliminary deal with US natural gas producer EQT Corporation that it still anticipates FID on the project in the first quarter of 2024.
The company’s plant in Cameron will use gas turbines and other equipment from energy services firm Baker Hughes as part of a deal announced in August.
Commonwealth LNG also recently entered into a non-binding 20-year supply deal with Switzerland-based energy trader MET Group for 1 mtpa of LNG and it also closed an investment of development capital from private funds managed by Kimmeridge Energy Management.
This investment completes the development funding required for the firm to reach FID.
The two firms have also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply.
Last year, Commonwealth LNG also finalized a supply deal with Australian LNG firm Woodside.
The deals are for the supply of up to 2.5 mtpa of LNG over 20 years to Woodside Energy Trading Singapore from Commonwealth’s LNG export facility.
Commonwealth LNG is planning to build the liquefaction and export facility on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico near Cameron, Louisiana.
The facility also includes six 50,000-cbm LNG storage tanks, one jetty with the capacity to service vessels from 10,000 cbm to 216,000 cbm, and a pipeline.
An accelerated construction schedule will allow the project to be built in three years using a modular approach with major components being fabricated offsite.