Commonwealth LNG signed an agreement with an undisclosed buyer to supply LNG from its 9.5 million tonnes/year (tpy) plant currently under development in Cameron, La.
The deal, signed with “a major Asian energy company,” will see Commonwealth supply 1 million tpy of LNG for 20 years, the company said in a release May 5.
While Commonwealth didn’t name the LNG buyer, it said the energy corporation operates “comprehensively across the oil and gas value chain from upstream to downstream,” and is one of the largest global suppliers of LNG.
The agreement will become fully effective upon the satisfaction of customary conditions, including a positive final investment decision (FID) on the project. Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth, said the offtake agreement is a milestone as the company moves toward FID later this year with first offtake planned for 2029.
The project’s modularized approach is “designed to streamline schedule and reduce capital costs,” according to the company website, with construction expected to begin in this year’s third quarter pending FID.
The plant received conditional authorization from the US Department of Energy (DOE) earlier this year to export US LNG from the plant (OGJ Online, Feb. 17, 2025). It was the first export authorization delivered by the DOE following the Biden administration pause of such permits. President Trump on Jan. 20, 2025, ordered the LNG export approval pause lifted (OGJ Online, Jan. 21, 2025).