Kimmeridge’s Commonwealth LNG gets FERC approval

In May, FERC issued a final supplemental environmental impact statement for Commonwealth’s proposed LNG export plant.

With the FERC final order in place and prior receipt of a conditional non-free trade agreement export authorization from the US DOE, Commonwealth anticipates reaching a final investment decision (FID) in the third quarter of this year with first LNG production expected in 2029, the company said in a statement.

The Commonwealth LNG project is proceeding with “significant momentum” from recently announced long-term binding LNG offtake agreements with global purchasers, including Glencore, Jera, and Petronas, and “line of sight toward finalizing its commercial book in the near term.”

Commonwealth expects its export facility to unlock approximately $11 billion in investments in Louisiana and an estimated $3.5 billion in annual export revenue, utilizing approximately 2,000 workers at the peak of construction and providing 270 jobs when the facility begins operations.

Mubadala deal

Besides these SPAs UAE’s Mubadala will take a stake in Kimmeridge’s Commonwealth under a deal announced in May.

Mubadala signed an agreement with Kimmeridge to acquire a 24.1 percent interest in the latter’s SoTex HoldCo via the issuance of new equity.

SoTex holds two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford in South Texas, and Commonwealth LNG.

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.