Published: August 16, 2023 | Share This

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Commonwealth LNG said that it has secured the development funding needed to take a final investment decision (FID) on its namesake LNG export facility in Cameron, Louisiana.

The company has closed a development capital investment from private funds overseen by Kimmeridge Energy Management, an alternative asset management firm with a specialization in the energy sector.

To be built on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico, the Commonwealth LNG project is designed to have a capacity of 9.3 million tons per annum (mtpa).

Commonwealth LNG and Kimmeridge have also reached a preliminary agreement on the terms of a 20-year, 2mtpa LNG offtake commitment from the project, along with the corresponding gas supply.

The agreement covers essential conditions for Kimmeridge Energy Management’s involvement, which entails providing additional equity to support the construction of the Commonwealth LNG facility.

“This deal brings an additional 2 mtpa of offtake to the project from a customer who is willing and able to stand behind their commitment,” said Commonwealth LNG President and CEO Farhad Ahrabi.

“The recent LNG marketing progress, the completion of FEED, and the conclusion of the EPC contract with Technip Energies ensures Commonwealth commences delivering LNG to our customers in early 2027,” added Ahrabi.

Commonwealth LNG obtained authorization from the U.S. Federal Energy Regulatory Commission (FERC) for its project in November 2022. Initial site preparations were slated to commence during the latter part of 2023, with the formal FID aimed for Q4 2023.

The company intends to employ a highly modularized strategy that will facilitate the facility’s construction within 36 months. This will enable the initiation of commercial operations in Q4 2026.

“Our transaction with Commonwealth LNG gives Kimmeridge the opportunity to be vertically integrated from wellhead to water, enabling us to provide reliable, secure, and clean energy to global markets,” said Kimmeridge Energy Management Managing Partner Ben Dell.

“We have been impressed with the strong management team Commonwealth LNG has assembled and their commitment to successfully sanction and construct the project,” added Dell.

Source: NS Energy

Commonwealth LNG is a 9.3 mtpa liquefied natural gas (LNG) export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana. The project’s leadership team is committed to building a world-class LNG facility by staying relentlessly focused on managing risk and lowering capital cost.

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