This follows a heads of terms announced in September 2024 for volumes from the proposed 9.5 mtpa facility in Cameron.
Under the binding deal, Glencore will purchase 2 million tonnes per annum (mtpa) of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from Kimmeridge Texas Gas (KTG) under a netback agreement at international prices, according to a statement by Kimmeridge on Tuesday.
“Inclusive of agreements with Glencore, Commonwealth has 3 mtpa of offtake under long-term agreement, with line of sight towards finalizing its commercial book ahead of a targeted final investment decision in Q3 2025 and anticipated first LNG production in 2029,” Kimmeridge said.
Commonwealth recently signed a 20-year LNG sales and purchase agreement for 1 mtpa of LNG with an Asian buyer.
On the other hand, Woodside terminated its two LNG sale and purchase agreements with Commonwealth.
The deals were for the supply of up to 2.5 mtpa of LNG over 20 years to Woodside Energy Trading Singapore.
FERC approval
In February, Commonwealth said it was targeting FID on its planned LNG facility in Cameron Parish in September of this year after it received a conditional non-FTA approval from the US DOE.
The LNG terminal developer also received its draft supplemental environmental impact statement (SEIS) from FERC.
FERC still needs to issue the final SEIS, which is expected in May, and the final order, which is expected in July.
However, Commonwealth is seeking expedited final approval from FERC.
Mubadala deal
UAE’s Mubadala will take a stake in Kimmeridge’s Commonwealth under a recently revealed deal.
Mubadala signed an agreement with Kimmeridge to acquire a 24.1 percent interest in the latter’s SoTex HoldCo via the issuance of new equity.
SoTex holds two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford in South Texas, and Commonwealth LNG.
In June 2024, Kimmeridge, via its affiliate KTG took a 90 percent stake in Commonwealth.
Before that, Commonwealth closed an investment of development capital from funds managed by Kimmeridge.
The two firms also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply.
As per other deals, Commonwealth entered into a non-binding 20-year supply deal with Switzerland-based energy trader MET Group for 1 mtpa of LNG.
Commonwealth is planning to build the six-train liquefaction and export facility on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico near Cameron.
The facility includes six 50,000-cbm LNG storage tanks, one jetty with the capacity to service vessels from 10,000 cbm to 216,000 cbm, and a pipeline.
