Commonwealth LNG Signs 20-Year Deal for Louisiana Project with Major Asian Buyer
(Reuters) — U.S. energy firm Commonwealth LNG said on May 5 it signed a sale and purchase agreement with a major Asian energy company.
Under the 20-year agreement, Commonwealth said the buyer will purchase 1 million tonnes per annum (MTPA) of liquefied natural gas from Commonwealth's planned 9.5-MTPA facility in Cameron, Louisiana.
Commonwealth did not name the buyer but said it was one of the world's leading energy corporations with oil and gas operations, and is one of the largest global suppliers of LNG.
Last week, Reuters reported that Malaysian state-owned oil and gas firm Petroliam Nasional Berhad, known as Petronas, was in talks with Commonwealth to buy LNG.
"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 energy investment firm Kimmeridge and chairman of Commonwealth.
Commonwealth said it expects the phase 1 development will bring an investment of more than $11 billion to Louisiana and generate an estimated $3.5 billion in annual export revenue.
The project is expected to employ about 2,000 workers at the peak of construction and provide approximately 275 jobs when the facility begins operations in late 2029, Commonwealth said.
Commonwealth is owned by Kimmeridge's Kimmeridge SoTex Holdco unit.
The SPA with the buyer will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project, Commonwealth said.
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