Commonwealth LNG, a US-based producer of liquefied natural gas (LNG), announced it has signed a 20-year sale and purchase agreement with a leading Asian energy company. Under the agreement, the buyer will purchase 1 million tonnes of LNG annually from Commonwealth’s terminal currently under development in Cameron, Louisiana. The facility is designed for a total capacity of 9.5 million tonnes per year.
$11bn investment planned in Louisiana
The project’s first phase includes an investment exceeding $11bn (approximately €10.25bn) in the state of Louisiana. Once operational, the facility is expected to generate about $3.5bn (approximately €3.26bn) in annual export revenue. At its construction peak, the site will employ around 2,000 workers and create 275 permanent jobs when operations begin in 2029.
This agreement marks a strategic milestone for Commonwealth LNG as it approaches its final investment decision, expected later in 2025. “This offtake agreement represents an important step for Commonwealth,” said Ben Dell, Managing Partner at Kimmeridge and Chairman of Commonwealth’s Board.
Long-term partnership with a global LNG leader
The buyer, whose identity has not been disclosed, is among the world’s largest LNG suppliers and operates across the entire oil and gas value chain, from upstream exploration to downstream distribution. This collaboration supports Commonwealth’s strategy of directly linking gas production to export markets, particularly in Asia.
“We are pleased to grow this long-term partnership,” said Farhad Ahrabi, President and CEO of Commonwealth LNG. The company is owned by Kimmeridge SoTex Holdco LLC, founded by asset manager Kimmeridge, which specialises in the energy sector.
Integrated model from wellhead to terminal
Through its subsidiary SoTex, Kimmeridge is developing an integrated model known as “wellhead-to-water,” also operating an upstream company, Kimmeridge Texas Gas. The goal is to deliver low-cost LNG in response to rising global demand. The agreement will become effective following the fulfilment of standard conditions, including a final investment decision on the project.
