Under the heads of terms, Glencore will buy 2 million tonnes per annum of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from Kimmeridge Texas Gas under a netback agreement at international prices.
According to a statement by US private equity firm Kimmeridge, the definitive agreements are expected to be finalized among the parties in the fourth quarter of 2024.
In June, Kimmeridge, via its affiliate KTG took a 90 percent stake in Commonwealth.
Before that, Commonwealth closed an investment of development capital from funds managed by Kimmeridge.
The two firms also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply.
Kimmeridge said on Thursday that Commonwealth expects a final investment decision on its LNG export facility in Louisiana in the first half of 2025, with the first LNG production expected in 2028.
Earlier this year, Commonwealth pushed back the decision from the first quarter of 2024 to the first half of 2025 due to the US DOE pause in permit reviews.
Commonwealth received FERC authorization in November 2022, but DOE still needs to approve its non-FTA application. The NFTA approval is the only remaining permit required for the project.
The company’s plant in Cameron will use gas turbines and other equipment from energy services firm Baker Hughes as part of a deal announced in August 2023.
Moreover, Commonwealth entered into a non-binding 20-year supply deal with Switzerland-based energy trader MET Group for 1 mtpa of LNG, and it also finalized a supply deal in 2022 with Australian LNG firm Woodside.
The deal is for the supply of up to 2.5 mtpa of LNG over 20 years to Woodside Energy Trading Singapore from Commonwealth’s LNG export facility.
Commonwealth is planning to build the six-train liquefaction and export facility on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico near Cameron, Louisiana.
The facility includes six 50,000-cbm LNG storage tanks, one jetty with the capacity to service vessels from 10,000 cbm to 216,000 cbm, and a pipeline.
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