Commonwealth LNG has announced the signing of a long-term Sale and Purchase Agreement with a major Asian energy company. Under the terms of the agreement, the Buyer will purchase one million tonnes per annum of liquefied natural gas over a 20-year period from Commonwealth’s planned 9.5 mtpa LNG export facility in Cameron, Louisiana.
The facility, which is currently under development, marks a significant component of Commonwealth’s broader wellhead-to-water strategy. Ben Dell, managing partner at Kimmeridge and chairman of Commonwealth, commented:“This offtake agreement marks another important milestone for Commonwealth as we work toward a final investment decision later this year and prepare for initial offtake scheduled for 2029. We look forward to working with this Buyer, a longstanding leader in the global LNG sector, to bring reliable energy to key international markets.”
Phase one of the project is expected to bring more than $11 billion in investment to the state of Louisiana and generate an estimated $3.5 billion in annual export revenues. During peak construction, the project will support approximately 2,000 jobs, and once operational in late 2029, it is expected to provide around 275 permanent high-paying positions.
The Buyer, identified as one of the world’s foremost integrated energy companies, has operations spanning the entire oil and gas value chain. Within the LNG sector, it ranks among the largest suppliers globally.
Commonwealth’s president and CEO, Farhad Ahrabi, expressed confidence in the partnership:“We look forward to building and strengthening our relationship with this Buyer in a way that delivers mutual value. Commonwealth is committed to developing a safe, reliable, efficient, and well-governed LNG company.”
Commonwealth is wholly owned by Kimmeridge SoTex Holdco LLC, an entity established by Kimmeridge, an energy-focused asset manager. Through SoTex—which also includes Kimmeridge Texas Gas, an upstream natural gas development company—Kimmeridge is advancing the creation of the United States’ first integrated gas independent. The goal is to deliver cost-effective, responsibly produced natural gas to meet rising global LNG demand.
The SPA will become fully effective upon the fulfilment of customary conditions, including a positive final investment decision on the Louisiana project.
For more information visit www.commonwealthlng.com
