Commonwealth LNG have announced that it has entered into a Heads of Agreement with EQT, the largest producer of natural gas in the US, for 1 million tons per annum of LNG under a 15-year tolling agreement, and associated gas supply to Commonwealth LNG’s facility in Cameron, Louisiana.
Commonwealth LNG Founder and executive chairman Paul Varello said, “We are very pleased to add a US producer of EQT’s stature to Commonwealth’s customer portfolio.”
He added, “This agreement will connect EQT’s vast natural gas assets to Commonwealth’s LNG facility, thus creating a robust value chain from wellhead to water. Accessing EQT’s natural gas production, which achieved a 20 percent year-over-year reduction in Scope 1 and Scope 2 greenhouse gas emissions, supports Commonwealth’s goal of achieving best in class environmental standards.”
Commonwealth anticipates a final investment decision on the project in the first quarter of 2024, with first cargo deliveries expected in 2027. An accelerated construction schedule will allow the project to be built in three years using a modular approach with major components being fabricated offsite.
The terms anticipated under the HOA would commence at the start of commercial operation of the facility. Final terms remain subject to negotiation of a definitive agreement between the parties.
For more information visit www.commonwealthlng.com