HomeNewsMET Group signs energy supply deal with Commonwealth LNG

MET Group signs energy supply deal with Commonwealth LNG

9/4/2023

(Reuters) - Switzerland-based energy trader MET Group said it has signed a preliminary agreement with Commonwealth LNG to buy LNG from the U.S. company's facility currently under development in Cameron, Louisiana.

Under the 20-year heads of agreement, MET will purchase one million mtpa from Commonwealth LNG, which is expected to begin shipping by 2027 through six natural gas liquefaction trains and associated facilities capable of producing around 9.3 mtpa of LNG.

"LNG supply into Europe is a significant contributor to gas supply diversification and an important contributor to European energy security," MET Group Chairman and CEO Benjamin Lakatos said.

Energy prices have soared since Russia's invasion of Ukraine last year, compounding supply chain snarls, leaving customers in Europe and global markets scrambling for alternate supplies.

Record LNG exports from the United States helped soften the blow to Europe from sharply lower Russian pipelined natural gas supplies in 2022, and will remain a vital energy source for the continent in 2023.

Commonwealth LNG founder and Executive Chairman Paul Varello said the agreement recognizes that U.S. LNG can and will play a continuing role in Europe’s energy transition by providing reliable and affordable natural gas to the region.

MET Group, whose activities include wholesale and retail distribution of gas, oil and power generation in Hungary, Croatia, Romania, Slovakia, Switzerland and the United Kingdom, among others imported more than 30 terawatt-hours (TWh) - or around 2.3 million tons - of LNG cargoes in 2022.

This year, it has secured long-term LNG supply capacity in Germany and expanded its spot supply capacity reach to Finland.

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