Commonwealth LNG, a 9.5 million tonnes a year liquefied natural gas export terminal in Louisiana, has signed a 20-year deal to supply a “major” Asian energy company.
The contract will see Commonwealth supply one million tonnes of LNG per year.
Phase one of Commonwealth LNG is expected to bring an investment of more than $11bn to Louisiana and generate an estimated $3.5bn in annual export revenue.
Investment firm Kimmeridge Energy Management Company holds a 90% stake in the project. It acquired its stake in June as part of its plan to combine its upstream natural gas production in South Texas with midstream liquefaction and export capabilities.
Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, described the offtake agreement as an important milestone as the project works toward a final investment decision later this year.
“We look forward to working with this buyer, a longstanding leader in LNG, as we further our integrated wellhead-to-water strategy in delivering LNG.”
The sales and purchase agreement will take effect once standard conditions are met, including a final decision to invest.
