Commonwealth LNG signs 20-year HOA with MET Group

Commonwealth LNG LLC has entered into a heads of agreement (HOA) with Switzerland-based MET Group, an integrated European energy company, for the sale of 1 million tonnes/year (tpy) of LNG for 20 years from Commonwealth LNG’s LNG plant under development in Cameron Parish, La.

The Commonwealth LNG project is permitted and will include six natural gas liquefaction trains and associated infrastructure capable of producing about 9.3 million tpy of LNG. The company is completing remaining steps necessary to make a final investment decision on the project in first-quarter 2024.

An accelerated construction schedule will allow the project to be built in 3 years using a modular approach with major components being fabricated offsite, the company said.

Terms anticipated under the non-binding agreement would begin at the start of commercial operation of the plant in 2027. Final terms remain subject to negotiation of a definitive agreement between the parties.