Commonwealth LNG finalizes LNG offtake agreement with Glencore

Commonwealth LNG LLC and Kimmeridge Texas Gas (KTG) finalized binding agreements with Glencore Ltd. to form a natural gas and LNG partnership.

Under the terms of the agreements, Glencore will purchase 2 million tonnes/year (tpy) of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from KTG under a netback agreement at international prices.

A heads of terms agreement on the partnership was signed in September 2024 (OGJ Online, Sept. 19, 2024).

At the time, the finalized agreement had been expected in fourth-quarter 2024, with an expected final investment decision (FID) on the 9.5-tpy liquefaction plant in Cameron Parish, La., in this year’s first half with first LNG production expected in 2028.

The timeline has moved slightly, with Commonwealth looking to finalize its commercial book ahead of a targeted final investment decision in this year’s third quarter and anticipated first LNG production in 2029.

Inclusive of agreements with Glencore, Commonwealth has 3 million tpy of offtake under long-term agreements.

In February, the US Department of Energy issued conditional export authorization to Commonwealth, the first such authorization following the Biden administration’s pause on such permits (OGJ Online, Feb. 17, 2025).