Commonwealth LNG inks deal with Kimmeridge, eyes FID in Q1 2024

Commonwealth LNG now plans to take a final investment decision on its proposed 9.3 mtpa plant in Cameron, Louisiana, in the first quarter of next year after it joined forces with US private equity firm Kimmeridge to build the facility.

A spokesperson for Commonwealth LNG told LNG Prime that the firm plans to “take FID in the first quarter of next year.”

Commonwealth LNG said it had closed an investment of development capital from private funds managed by Kimmeridge Energy Management and the investment completes the development funding required for Commonwealth LNG to reach FID.

Commonwealth LNG and Kimmeridge 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.

The agreement also includes key terms for Kimmeridge’s participation to provide further equity in Commonwealth LNG to support construction of the facility, it said.

Commonwealth LNG president and CEO Farhad Ahrabi said, “this deal brings an additional 2 mtpa of offtake to the project from a customer who is willing and able to stand behind their commitment.”

“The recent LNG marketing progress, the completion of FEED, and the conclusion of the EPC contract with Technip Energies ensures Commonwealth commences delivering LNG to our customers in early 2027,” he said.

“Commonwealth LNG brings a differentiated offering to the LNG market through our modular design that lowers cost, speeds time-to-market, and avoids contractor concentration risk,” Ahrabi added.

In November last year, Commonwealth LNG received approval from the US Federal Energy Regulatory Commission to build its facility in Louisiana.

Prior to that, Commonwealth LNG finalized a supply deal with Australian LNG firm Woodside in September.

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.

It previously expected to take FID in the fourth quarter of this year and launch the facility in the fourth quarter of 2026, according to its website.

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.

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