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According to a statement by Caturus, Kimmeridge’s LNG and gas unit in which UAE’s Mubadala has a 24.1 percent stake, Commonwealth LNG has finalized customer offtake agreements to underpin financing of its 9.5 mtpa LNG export project near Cameron, Louisiana.
EQT LNG Trading, Glencore, Mercuria Energy Trading, Petronas LNG, and Aramco Trading Americas have each entered into long-term sale and purchase agreements with Commonwealth for offtake from the facility, it said.
Commonwealth recently revealed in a filing with the US Department of Energy that a long-term sales and purchase deal between the company and Japan’s Jera had been terminated.
In February, the company signed a 20-year sales and purchase agreement with Saudi Arabia’s energy behemoth Aramco to supply the latter with LNG from its planned LNG export project.
Under the SPA, Aramco Trading will purchase 1 mtpa of LNG from the Commonwealth LNG export facility currently under development.
Commonwealth said the SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative FID on the Commonwealth LNG project.
$12.5 billion
Commonwealth’s Phase 1 development is a $12.5 billion project that will generate an estimated $3.5 billion in annual export revenue, according to Caturus.
The project is expected to begin operations in 2030 with site preparation underway to facilitate early site works, it said.
Moreover, Caturus has authorized purchase orders via Commonwealth LNG engineering, procurement and construction (EPC) partner Technip Energies to commence manufacturing of long-lead major equipment for the Commonwealth LNG facility.
This includes Baker Hughes for six mixed-refrigerant compressors driven by LM9000 gas turbines; Honeywell, to supply six main cryogenic heat exchangers; and Solar Turbines, providing four Titan 350 gas turbine-generators.
Caturus said the execution phase is now underway with a series of limited notices to proceed that maintain project schedule and project cost.
Subcontracts have been awarded for site preparation and surge wall development, as well as marine and material offloading facilities, it said.
SM Energy
Caturus’ upstream operations and Commonwealth LNG are consolidated under the Caturus platform established by Kimmeridge.
In addition to progress made on the Commonwealth LNG project, Caturus expects to close its transaction announced in February for the acquisition of SM Energy’s Galvan Ranch assets in the near term.
The acquisition includes approximately 60,000 high quality net acres in South Texas and ~250 MMcfe/d of production from 260 producing wells.
With the addition of these assets, Caturus expects to be producing approximately 1 billion cubic feet equivalent per day net and rank among the top 10 private US. gas pure-play producers, the firm said.
Technip Energies authorization
France-based LNG engineer Technip Energies announced later on Tuesday that it has received a “substantial” authorization from Commonwealth LNG to continue advancing its LNG export facility, marking an important step forward in the project’s progress and path toward FID.
A “substantial” award for Technip Energies is a contract award representing between 500 million euros ($578.5 million) and 1 billion euros ($1.16 billion) of revenue.
Issued under the engineering, procurement, and construction (EPC) contract previously signed with Commonwealth LNG, this award enables Technip Energies to sustain critical activities and maintain strong project momentum ahead of FID, building on the previously announced large authorization covering key long-lead equipment purchase orders.
Technip Energies noted that the project includes the delivery of six identical liquefaction trains, utilizing Technip Energies’ SnapLNG by T.EN modular and scalable solution.
(Article updated to include a statement by Technip Energies.)
