Pittsburgh-based EQT Corporation has signed a long-term sale and purchase agreement (SPA) with Commonwealth LNG, a firm controlled by the energy-focused alternative investment manager Kimmeridge, for liquefied natural gas (LNG) from the latter’s export facility under development on the Gulf Coast near Cameron, Louisiana.
Under the terms of the agreement, EQT will get 1 million tonnes per annum (mtpa) of liquefaction capacity for 20 years at the Commonwealth LNG facility. In order to optimize its cargoes internationally, the company will purchase the volumes on a free-on-board basis at a price indexed to Henry Hub and market.
This follows the U.S. player’s last week’s deal with compatriot NextDecade. Under it, 1.5 mtpa of LNG will be purchased for 20 years from Train 5 of the Rio Grande LNG (RGLNG) project under development at the Port of Brownsville, Texas.
“The signing of this agreement with Commonwealth LNG adds to the momentum we are building in the LNG market and further strengthens EQT’s position as a leader connecting U.S. natural gas supply to growing global demand,” said Toby Z. Rice, President and CEO of EQT.
According to Rice, the latest agreement helps EQT establish a diversified LNG export portfolio that will give it the flexibility needed to market and optimize its own cargoes as global demand for reliable, lower-carbon energy continues to rise.
Ben Dell , Managing Partner of Kimmeridge and Chairman of Caturus, the parent company of Commonwealth LNG, stated: “The agreement with EQT is a strong endorsement of our integrated natural gas platform, featuring a unique wellhead-to-water strategy that meets burgeoning demand for LNG across global markets, while advancing U.S. energy leadership and economic growth .”
As disclosed, the SPA will become fully effective once customary conditions are satisfied, including taking a final investment decision (FID) on the 9.5-mtpa Commonwealth LNG project. The developer hopes to take the FID in Q3 2025 , followed by the anticipated start of LNG production in 2029.
Last month, the company gave its blessing for Baker Hughes’ technology to be used at the facility under development. The order will be placed by Technip Energies, which was previously picked to provide engineering, procurement, and construction (EPC) services for the future plant.