Wedoany.com Report-May 18, Commonwealth LNG, a U.S.-based company, and Kimmeridge Texas Gas (KTG), both affiliated with the energy investment manager Kimmeridge, have signed binding agreements with Swiss-based Glencore to supply liquefied natural gas (LNG) from a new export facility under development in Louisiana.

As part of the agreements, Glencore will purchase 2 million tonnes per annum (mtpa) of LNG for 20 years from the Commonwealth LNG project. Additionally, Glencore will secure an equivalent amount of natural gas from Kimmeridge through a netback arrangement at international prices. This marks the formalization of a heads of terms agreement first made in September 2024.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, stated: “Following from the initial partnership announcement with Glencore last year, this critical milestone furthers our commitment to developing a state-of-the-art LNG export facility that will prioritize environmental stewardship and create lasting value for local communities. We are pleased with our progress and look forward to hitting the key targets on our commercialization timeline.”

These agreements follow an earlier deal with an unnamed major Asian energy company to purchase 1 mtpa of LNG for 20 years, which was announced earlier this month. With these recent deals, Commonwealth LNG has now secured 3 mtpa of LNG under long-term agreements. The project is expected to make its final investment decision and begin construction in Q3 2025, with the first LNG production slated for Q1 2029.

David Lawler, CEO of KTG, commented: “Our partnership with Glencore furthers the transformation of KTG into an integrated natural gas champion that provides reliable, clean energy from wellhead to water. We look forward to reaching critical international gas markets in partnership with Glencore.”

Maxim Kolupaev, Glencore’s Global Head of LNG, Gas, and Power, noted that the agreements with KTG and Commonwealth LNG are significant for advancing Glencore’s global gas strategy and align with the company’s commitment to a more sustainable energy future.

The proposed Commonwealth LNG liquefaction and export facility, located on the west bank of the Calcasieu Ship Channel near Cameron, Louisiana, will have a capacity of 9.5 mtpa. The facility will feature five 50,000-cubic-meter storage tanks and accommodate vessels up to 216,000 cubic meters.

In a separate development, UAE-based Mubadala Energy signed an agreement last month to acquire a 24.1% stake in Kimmeridge’s SoTex HoldCo. This marks Mubadala’s first significant investment in the U.S. and gives it access to Kimmeridge Texas Gas and the Commonwealth LNG project.