U.S.-based Commonwealth LNG has closed an investment of development capital from private funds managed by Kimmeridge Energy Management Company, boosting the development of its LNG export project in Louisiana, U.S.
The investment is said to complete the development funding required for Commonwealth LNG to reach a final investment decision (FID) on the 9.3 million tons per annum (mtpa) export facility.
Commonwealth LNG and Kimmeridge have also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply, with the agreement also including key terms for Kimmeridge’s participation to provide further equity in Commonwealth LNG to support the construction of the facility.
Paul Varello, Executive Chairman and Founder of Commonwealth LNG, said: “We are delighted to partner with Kimmeridge, a company that is committed to the transition toward a lower carbon future. This agreement signifies another major milestone in the project’s development and an alignment with a strategic partner who shares our vision about the future of global energy security.”
Ben Dell, Managing Partner of Kimmeridge, stated: “Our transaction with Commonwealth LNG gives Kimmeridge the opportunity to be vertically integrated from wellhead to water, enabling us to provide reliable, secure and clean energy to global markets.”
To remind, Commonwealth LNG’s project is located near Cameron, Louisiana, and the company is targeting the start of commercial operations at the facility by the second quarter of 2026.
In 2022, a Singapore-based unit of Australian energy major Woodside signed two LNG sale and purchase agreements (SPAs) with Commonwealth LNG for the supply of LNG from the terminal.
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