Caturus LLC has announced a positive Final Investment Decision (FID) for its Commonwealth LNG project following the successful close of $9.75 billion in project financing for the construction of a 9.5 million tonnes per annum (Mtpa) liquefied natural gas export facility in Cameron Parish, Louisiana.
The FID marks the beginning of full-scale construction on what the company describes as one of the most cost-competitive and efficient LNG projects in the United States. Investor interest in the development was strong, with the transaction attracting total financial commitments of $21.25 billion from equity and debt participants.
Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth LNG, said the milestone represented the culmination of years of strategic planning and partnership development aimed at creating a fully integrated “wellhead-to-water” operation.
The project has already secured long-term offtake agreements with several major global energy and industrial companies, including EQT, Glencore, Mercuria, PETRONAS and Aramco Trading. Phase 1 of the development is expected to generate more than $3 billion in annual export revenue once operations begin in 2030.
Mubadala Energy, which already holds a 24.1 percent stake in the Caturus platform, is also participating in the project financing. Managing Director and CEO Mansoor Mohamed Al Hamed described the FID as a major milestone that supports the company’s international growth strategy and strengthens its exposure across the global gas value chain.
Meanwhile, Canada Pension Plan Investment Board will contribute $1.2 billion in financing, increasing its total stake in the Caturus platform to 31 percent, including previous investments. Bill Rogers, managing director and head of sustainable energies at CPP Investments, said the company viewed Caturus’ integrated approach to natural gas production and LNG exports as a strong long-term investment opportunity capable of supporting energy reliability and resilience.
Additional financial backing for the project includes support from EOC Partners, funds and accounts managed by BlackRock, and an Ares Infrastructure Opportunities fund.
Caturus has already authorised Technip Energies, the project’s EPC partner, to begin ordering major long-lead equipment for the facility. The development will utilise Technip Energies’ modular LNG construction approach to improve efficiency and safety across the site. Equipment planned for the project includes six mixed-refrigerant compressors from Baker Hughes powered by LM9000 gas turbines, six main cryogenic heat exchangers supplied by Honeywell, and four Titan 350 gas turbine-generators from Solar Turbines. The export facility will also be capable of loading LNG carriers with capacities of up to 216,000 cubic metres.
Caturus CEO David Lawler said growing global demand for natural gas positioned the company to become a major integrated player spanning upstream production through to LNG exports. He added that the company’s integrated strategy was intended to meet increasing international demand for reliable, lower-carbon energy solutions.
In the lead-up to the Commonwealth LNG FID, Caturus also expanded its upstream portfolio through the acquisition of Galvan Ranch natural gas assets from SM Energy. The company now produces more than one billion cubic feet equivalent per day on a net basis, placing it among the top 10 private natural gas-focused producers in the United States.
Dell said the company aimed to establish new industry benchmarks across its integrated operations and acknowledged the support of government and industry stakeholders involved in advancing the project. The Commonwealth LNG development also represents the $100 billion milestone in invested capital in the State of Louisiana during Governor Jeff Landry’s administration.
For more information visit www.caturus.com
