Commonwealth LNG lines up new agreement with Glencore
Published 12:15 pm Monday, September 23, 2024
- Commonwealth LNG is a LNG liquefaction and export facility located on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico near Cameron. The facility will have six 50,000 M3 modular storage tanks and will be able to accommodate vessels up to 216,000 M3. (Special to the American Press)
Commonwealth LNG, which continues to develop its export facility on Calcasieu Pass in Cameron Parish, signed a “heads of terms” agreement to sell 2 million tonnes per annum to Glencore Ltd. for 20 years.
Earlier this year, Commonwealth was taken over by New-York based Kimmeridge Energy Management Company. Glencore would also buy the equivalent natural gas supply from Kimmeridge Texas Gas, a Houston-based affiliate of Kimmeridge Energy Management.
The definitive agreements are expected to be finalized among the parties later this year, according to a news release from the company. Commonwealth/Kimmeridge anticipates a final investment decision on its facility in the first half of 2025 with the first LNG production expected in 2028.
“Our partnership with Glencore represents another tangible step forward for the KTG platform in becoming a fully integrated provider of reliable, secure and clean energy from wellhead to water,” Kimmeridge Texas Gas CEO David Lawler stated in the emailed release. “With Commonwealth by our side, we look forward to reaching critical international markets in partnership with Glencore, who shares our vision of responsible LNG production and usage.”
A court recently ordered FERC to reassess its authorization of Commonwealth LNG in order to “redress the defects in its (greenhouse gas)-emissions and cumulative effects analyses and still authorize the project,” the Houston Business Journal reported.
Commonwealth LNG confirmed it is working constructively with FERC and that its targeted final investment decision and startup times are not changed.
