Commonwealth LNG completes deal for liquefaction plant development funding

Commonwealth LNG LLC has partnered with Kimmeridge Energy Management Co. LLC to advance development of its 9.3-million tonne/year (tpy) liquefaction plant in Cameron Parish, La.

Investment capital provided by private funds managed by the alternative asset management firm completes the development funding required for Commonwealth LNG to reach final investment decision (FID) on the plant, Commonwealth LNG said in a release Aug. 14.

Commonwealth LNG and Kimmeridge have also agreed in principle on terms for a 20-year, 2 million tpy LNG offtake commitment along with the associated gas supply.

The agreement also includes key terms for Kimmeridge's participation to provide additional equity to support plant construction.

“The recent LNG marketing progress, the completion of FEED, and the conclusion of the EPC contract with Technip Energies ensures Commonwealth commences delivering LNG to our customers in early 2027,” said Commonwealth LNG president and chief executive officer Farhad Ahrabi.

In November 2022, Commonwealth LNG received US Federal Energy Regulatory Commission approval for the liquefaction plant (OGJ Online, Nov. 18, 2022).