Swiss player getting two decades’ worth of LNG from Louisiana export terminal

U.S.-based Commonwealth LNG and Kimmeridge Texas Gas (KTG), an affiliate of the energy-focused alternative investment manager Kimmeridge, have signed a multi-year heads of terms (HoT) agreement with Swiss-headquartered Glencore for the supply of natural gas and liquefied natural gas (LNG) from an export facility under development in Louisiana.

Glencore is set to purchase 2 million tonnes per annum (mtpa) of LNG for 20 years from the Commonwealth LNG project and equivalent natural gas supply from KTG under a netback agreement. The definitive agreements are expected to follow in Q4 2024. 

David Lawler, KTG CEO and President, said: “Our partnership with Glencore represents another tangible step forward for the KTG platform in becoming a fully integrated provider of reliable, secure and clean energy from wellhead to water. With Commonwealth by our side, we look forward to reaching critical international markets in partnership with Glencore, who shares our vision of responsible LNG production and usage.”

Commonwealth believes a final investment decision (FID) on its LNG export facility in Cameron, Louisiana will be reached in the first half of 2025, with the first LNG production anticipated in 2028. Kimmeridge took a controlling interest in Commonwealth LNG in June, increasing its equity ownership to more than 90%.

“This agreement is the result of a strong relationship between Glencore and Kimmeridge, building upon our common vision of helping economies accelerate their energy transition ambitions,” noted Maxim Kolupaev, Glencore Global Head of LNG, Gas and Power.

The proposed 9.5 mtpa liquefaction and export facility on the west bank of the Calcasieu Ship Channel is set to have five 50,000 cubic meters (cbm) storage tanks, accommodating vessels up to 216,000 cbm. The terminal has garnered interest from MET Group, which signed a 20-year LNG supply deal, and EQT, which penned a 15-year tolling agreement.