Commonwealth LNG will supply European energy company MET Group with one million tonnes per annum of liquefied natural gas (LNG) per annum from its export facility currently under development in Cameron, Louisiana.
The duo today (4th Sept) announced the signing of a Heads of Agreement (HOA), which solidifies the LNG supply for a 20-year period. The contract is set to commence in 2027, in line with the commercial operation of the site.
Paul Varello, founder and Executive Chairman of Commonwealth LNG, said the agreement recognises that US LNG can and will play a continuing role in Europe’s energy transition by providing reliable and affordable natural gas to the region.
News of the deal comes as MET Group has said it is increasing its participation in the LNG market. In 2022 alone, the company imported more than 30TWh of LNG cargoes to countries including Croatia, Greece, Spain, and the UK.
This year, the company also secured long-term LNG capacities in Germany and expanded its spot capacity reach to Finland.
Read more: MET Group secures LNG capacities at Lubmin terminal
Benjamin Lakatos, Chairman and CEO of MET Group, added, “LNG supply in Europe is a significant contributor to gas supply diversification and an important contributor to European energy security.”
Commonwealth LNG hopes to achieve a final investment decision on the project in the first quarter of 2024 with first deliveries of cargo 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.
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.
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