Kimmeridge’s Commonwealth LNG gets final non-FTA approval from DOE

In February this year, Commonwealth received the conditional non-free trade agreement (non-FTA) export authorization from the DOE.

Additionally, the LNG terminal developer received the Federal Energy Regulatory Commission’s final order, upholding authorization, in June of this year.

Commonwealth welcomed the final approval from DOE to export up to 1.21 billion cubic feet per day (Bcf/d) of natural gas as LNG to non-FTA countries in a short statement on Friday.

“Receiving our final non-FTA is a pivotal moment for Commonwealth,” said Ben Dell, managing partner of Kimmeridge and chairman of Caturus.

Commonwealth recently authorized an order for six Baker Hughes refrigerant turbo compressors required for the liquefaction process of its planned LNG export project near Cameron.

The order will be placed by Technip Energies, which Commonwealth announced will lead the engineering, procurement, and construction (EPC) execution of its LNG facility.

Commonwealth anticipates announcing a final investment decision later this year.

The company recently sought approval from FERC to start initial site preparation activities for its LNG export project.

Also, UAE’s Mubadala recently closed its previously announced investment in Kimmeridge’s gas and LNG unit SoTex, which has now been rebranded as Caturus. The deal includes Commonwealth LNG.

This year, the company announced long-term binding LNG offtake agreements with global purchasers, including Glencore, Jera, and Petronas.

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.