Commonwealth LNG announces 20-yr LNG sale and gas supply agreements with Mercuria
Commonwealth LNG announced the signing of an LNG Sale and Purchase Agreement (LNG SPA) with Mercuria Energy Trading S.A. to provide 1 million tons per annum (MMtpy) of LNG for 20 years from the Commonwealth LNG export facility in Cameron, Louisiana and a Gas Supply Agreement (GSA) with Mercuria Americas (together with Mercuria Trading, Mercuria) for the supply of a corresponding quantity of natural gas to Commonwealth. Mercuria is one of the world's largest independent energy and commodities traders.
"These agreements mark a significant strategic partnership and market expansion," said Caturus CEO David Lawler. "Mercuria's global reach can help Commonwealth distribute our LNG to a broader international community, while Mercuria gains a competitive edge with additional supply sources."
"This agreement reflects Mercuria's commitment to securing long-term, reliable LNG supply from high-quality U.S. projects," said Brian Falik, President of Mercuria Americas. "Commonwealth LNG's integrated approach, strong resource backing and focus on responsible, low-emission production align well with our strategy to serve global customers with dependable and competitively priced energy. We are pleased to partner with Commonwealth and Caturus as they advance a project that will play an important role in meeting growing international demand for LNG."
With the signing of the Mercuria SPA, Commonwealth has secured long-term, binding offtake agreements for 7 of the facility's 9.5 MMtpy permitted capacity, including commitments from prominent energy industry participants Glencore, JERA, PETRONAS and EQT. Final negotiations are underway for the facility's remaining capacity.
In August, Kimmeridge announced a rebranding that saw Commonwealth LNG and Kimmeridge's upstream operations (formerly Kimmeridge Texas Gas) combined under a new platform called Caturus. Caturus is building the nation's leading integrated natural gas and LNG company, with a unique wellhead-to-water strategy that will deliver responsibly sourced, low-emission fuel to global markets.
The SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
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