Commonwealth LNG and EQT sign LNG supply deal

Commonwealth LNG has signed a heads of agreement with US natural gas producer EQT for one million tonnes of LNG and associated gas supply to Commonwealth LNG’s facility in Cameron, Louisiana.

First cargo deliveries are expected in 2027 and will continue for a 15-year period.

Paul Varello, Executive Chairman and founder of Commonwealth LNG, said, “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.”

He adds that accessing EQT’s natural gas production, which achieved a 20% 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 expects to achieve a final investment decision on the project in the first quarter of 2024. An accelerated construction schedule will allow the project to be built in three years using a modular approach with major components being fabricated offsite.

Once complete, the site will include six natural gas liquefaction trains and associated facilities capable of producing approximately 9.3 million tonnes per annum of LNG.

The terms anticipated under the heads of agreement will commence at the start of commercial operation of the facility. Final terms remain subject to negotiation of a definite agreement between the parties.

According to the US Energy Information Administration (EIA), Louisiana accounts for about 10% of US total marketed natural gas production and holds about 7% of the nation’s natural gas reserves.

The EIA further says that in 2022, Louisiana shipped 63% of the nation’s liquefied natural gas exports and about 14% of its coal exports.

Asia-Pacific Industrial Gases Conference 2023

Decarbonisation and how the Asia-Pacific region pragmatically delivers against its sustainability needs in the near-term will be in focus at gasworld’s Asia-Pacific Industrial Gases Conference 2023 in Kuala Lumpur, Malaysia this December.

Join gasworld for its show-stopper 2.5 day event at the Renaissance Hotel & Convention Centre in Kuala Lumpur, Malaysia under the theme of Delivering On the Promise of Growth.

Taking place from 5-7 December 2023, the conference will tackle China’s clean energy and industrial gas build-out, the hydrogen society in the APAC region, the practical means of delivering decarbonisation in emerging economies in the short-term, the economic climate in Asia-Pacific and the local industrial gas markets, electronics and specialty gases in Southeast Asia, and so much more besides.

To attend, sponsor and for more information, visit www.gasworldconferences.com

About the author
Related Posts
No comments yet
Get involved
You are posting as , please view our terms and conditions before submitting your comment.
Loading feed...
Please wait...