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Commonwealth LNG announced on Friday it had received the conditional non-free trade agreement (non-FTA) export authorization from the DOE.
Also, the LNG terminal developer separately received its draft supplemental environmental impact statement (SEIS) from the Federal Energy Regulatory Commission (FERC).
These actions represent “significant” milestones in Commonwealth’s development of its 9.5 million tonnes per annum LNG facility in Cameron Parish, Louisiana, it said.
“With these decisions in hand, subject to a FERC final order, which we expect in July 2025, and DOE final authorization, Commonwealth anticipates reaching a final investment decision in September 2025, with first LNG production expected in Q1 2029,” said Commonwealth CEO Farhad Ahrabi.
“Today’s actions demonstrate that President Trump is prioritizing the American energy industry and we are both pleased and grateful to have achieved these important regulatory objectives,” Ahrabi said.
Last month, US President Donald Trump lifted a moratorium by the former Biden administration on non-FTA LNG export permits.
Trump issued the executive order, which was widely expected, just hours after officially taking over his second four-year term as the president.
This is the first non-FTA approval since the moratorium was lifted.
$11 billion in investments
Ben Dell, managing partner of Kimmeridge Energy Management and chairman of Commonwealth, said the Commonwealth export facility is expected to “unlock approximately $11 billion in investments in Louisiana and an estimated $3.5 billion in annual export revenue unleashing American energy, utilizing approximately 2,000 workers at the peak of construction and providing 270 high-paying jobs when the facility begins operations.”
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.
As per other deals, Switzerland-based energy trader Glencore entered into a long-term agreement with Commonwealth LNG in September last year.
Moreover, Commonwealth entered into a non-binding 20-year supply deal with Switzerland-based energy trader MET Group for 1 mtpa of LNG, and it also finalized a supply deal in 2022 with Australian LNG firm Woodside.
The deal is 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 is planning to build the six-train 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 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.