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Under the agreement, the unidentified buyer will purchase 1 million tonnes per annum (mtpa) of LNG for 20 years from Commonwealth’s planned facility, according to a statement by the LNG terminal developer.
Commonwealth said this buyer is “one of the world’s leading energy corporations, operating comprehensively across the oil and gas value chain from upstream to downstream.”
In the LNG sector, this buyer is currently “one of the largest global suppliers of LNG.”
Reuters recently reported, citing sources, that Malaysia’s Petronas was in talks with Commonwealth to buy LNG.
Commoweatlh said the SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
“This offtake agreement marks another important milestone for Commonwealth as we work toward a final investment later this year and first offtake planned for 2029,” said Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth.
In February, Commonwealth said it was targeting FID on its planned LNG facility in Cameron Parish in September of this year after it received a conditional non-FTA approval from the US DOE.
The LNG terminal developer also received its draft supplemental environmental impact statement (SEIS) from FERC.
FERC still needs to issue the final SEIS, which is expected in May, and the final order, which is expected in July.
However, Commonwealth is seeking expedited final approval from FERC.
Mubadala deal
UAE’s Mubadala will take a stake in Kimmeridge’s Commonwealth under a recently revealed deal.
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.
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.
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.
