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The partners said in a joint statement on Friday that FID marks the start of full construction and advances “one of the most cost-competitive and efficient LNG projects in the United States.”
Also, the decision includes the successful closing of $9.75 billion in project financing for the construction of the LNG plant.
The transaction garnered “strong” interest from both equity and debt investors, resulting in total commitments of $21.25 billion, according to the statement.
Mubadala Energy, which already holds a 24.1 percent stake in Kimmeridge’s Caturus platform comprised of Commonwealth LNG and Caturus’ upstream operations, is also an equity participant in the project’s financing.
Canada Pension Plan Investment Board (CPP Investments) will contribute $1.2 billion in financing to increase its total stake in the Caturus platform to 31 percent, including previous investments, the statement said.
Phase 1 development is expected to generate more than $3 billion in annual export revenue when operations commence in 2030, the partners said.
Other partners and contractors
In addition to Mubadala and CPP Investments, major financial partners in the project include EOC Partners, funds and accounts managed by BlackRock, and an Ares Infrastructure Opportunities fund.
Caturus previously authorized Technip Energies, Commonwealth LNG’s EPC partner, to order major long-lead equipment for the facility.
The partnership will leverage Technip Energies’ global LNG expertise and a modular approach to improve safety and efficiency across the site, the statement said.
Moreover, the facility will include six Baker Hughes mixed-refrigerant compressors powered by LM9000 gas turbines, six Honeywell main cryogenic heat exchangers, and four Titan 350 gas turbine-generators from Solar Turbines.
Offtake deals
Caturus said on April 7 that Commonwealth finalized customer offtake agreements, with the company set to launch the financing process with lenders as it advances FID.
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, Caturus said without providing further details.
This move came after Commonwealth revealed in a filing with the US Department of Energy that a 1 mtpa long-term sales and purchase deal between the company and Japan’s Jera had been terminated.
However, Commonwealth said in its semi-annual progress report filed with DOE on April 1 that it entered into an additional SPA agreement with Glencore on March 26 for up to 1 mtpa of LNG for a term of 20 years.
In May 2025, Glencore agreed to purchase 2 mtpa of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from Kimmeridge Texas Gas, now Caturus, under a netback agreement at international prices.
This means that Glencore will now buy up to 3 mtpa from Commonwealth.
In addition, Commonwealth said in the report that it has amended its existing SPA with EQT LNG Trading to increase the annual contract quantity to 2 mtpa per year of LNG.
In September last year, EQT agreed to purchase 1 mtpa of LNG for 20 years on a free on board basis at a price indexed to Henry Hub from Commonwealth’s facility.
These additional volumes from EQT replaced the volumes from the Jera SPA.
Most recently, Kimmeridge revealed that Switzerland-based energy trader Mercuria agreed to buy more LNG.
In February this year, Commonwealth announced the signing of an LNG SPA with Mercuria Energy Trading to provide 1 mtpa of LNG for 20 years and a gas supply agreement with Mercuria Americas for the supply of a corresponding quantity of natural gas to Commonwealth.
Commonwealth submitted an amendment to this SPA to the US DOE on May 6.
The company said that there were four amendments to the agreement between March 17 and April 14.
Under the new 20-year contract, Mercuria has the right to extend the term by up to three additional five-year periods.
Moreover, Mercuria agreed to buy approximately 1.5 million tonnes per annum, subject to the terms and conditions of the contract.
This means that the trader increased the annual capacity by approximately 0.5 mtpa.