Glencore to offtake 2 MMtpy of LNG from Commonwealth LNG's export facility in Cameron Parish, Louisiana
Kimmeridge Texas Gas (KTG) and Commonwealth LNG have finalized binding agreements with Glencore LTD, one of the world's largest globally diversified natural resource companies, to form a strategic natural gas and LNG partnership. Under the terms of the agreements, Glencore will purchase 2 million tons per year (MMtpy) of LNG for 20 years from Commonwealth, as well as an equivalent natural gas supply from KTG under a netback agreement at international prices.
Inclusive of agreements with Glencore, Commonwealth has 3 MMtpy of offtake under long-term agreement, with line of sight towards finalizing its commercial book ahead of a targeted final investment decision in Q3 2025 and anticipated the first LNG production in 2029.
Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, said, "Following from the initial partnership announcement with Glencore last year, this critical milestone furthers our commitment to developing a state-of-the-art LNG export facility that will prioritize environmental stewardship and create lasting value for local communities. We are pleased with our progress and look forward to hitting the key targets on our commercialization timeline."
David Lawler, KTG CEO, said, "Our partnership with Glencore furthers the transformation of KTG into an integrated natural gas champion that provides reliable, clean energy from wellhead to water. We look forward to reaching critical international gas markets in partnership with Glencore."
Maxim Kolupaev, Glencore Global Head of LNG, Gas and Power, commented, "Finalizing our agreements with Kimmeridge Texas Gas and Commonwealth marks an important step in advancing our global gas strategy. By partnering with two industry leaders in LNG and natural gas, we are expanding our portfolio and reinforcing our commitment to a cleaner, more sustainable energy future."
Giles Jones, Glencore Head of Energy, U.S., commented, "This partnership represents the further growth of our U.S. energy trading business, an area which continues to be a focus for significant investment. Together, the natural gas and LNG produced by Kimmeridge and Commonwealth respectively will enable Glencore to supply high quality, U.S. molecules to customers around the world."
Related News
Related News
- Three killed, two injured in accident at LNG construction site in Texas (U.S.)
- Update: How Germany is building up LNG import terminals
- TotalEnergies and partners launch the 2nd phase of Northern Lights CCS project
- Digital Exclusive: The value of experience—Why expertise matters in compressor overhauls and revamps
- Croatia's LNG terminal to auction 0.75 Bm3 of regasification capacity in May
Comments