Kimmeridge Texas Gas (KTG) and Commonwealth LNG LLC have entered into a heads of terms agreement with Glencore Ltd. to form a strategic natural gas and LNG partnership.
Under the terms of the agreement, Glencore will purchase 2 million tonnes/year (tpy) of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from KTG under a netback agreement at international prices.
The definitive agreements are expected to be finalized in this year’s fourth quarter. Commonwealth anticipates a final investment decision (FID) on its 9.5 tpy LNG plant in Cameron Parish, La., in first-half 2025, with first LNG production expected in 2028.
In 2023, Kimmeridge invested with Commonwealth LNG LLC, completing the development funding required to advance Commonwealth’s liquefaction (OGJ Online, Aug. 14, 2023). At the same time, the two parties agreed in principle on terms for an LNG offtake commitment along with the associated gas supply.