Commonwealth announced on Tuesday the signing of the LNG SPA with Mercuria Energy Trading to provide 1 million tonnes per annum (mtpa) of LNG for 20 years and a gas supply agreement with Mercuria Americas for the supply of a corresponding quantity of natural gas to Commonwealth.
“These agreements mark a significant strategic partnership and market expansion,” said Caturus CEO David Lawler.
Caturus is Kimmeridge’s LNG and gas unit in which UAE’s Mubadala has a 24.1 percent stake.
“Mercuria’s global reach can help Commonwealth distribute our LNG to a broader international community, while Mercuria gains a competitive edge with additional supply sources,” Lawler said.
“This agreement reflects Mercuria’s commitment to securing long-term, reliable LNG supply from high-quality US projects,” said Brian Falik, president of Mercuria Americas.
7 mtpa
Commonwealth noted that the SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
With the signing of the Mercuria SPA, Commonwealth has secured long-term, binding offtake agreements for 7 of the facility’s 9.5 mtpa permitted capacity.
The company has entered into long-term sale and purchase agreements with Petronas for 1 mtpa of LNG, Glencore for 2 mtpa of LNG, Jera for 1 mtpa of LNG, and EQT for 1 mtpa of LNG.
Saudi Arabia’s energy behemoth Aramco also signed a preliminary deal with Commonwealth LNG,
Commonwealth said that final negotiations are underway for the facility’s remaining capacity.
In December, Caturus authorized full purchase orders to key industry partners supporting development of its Commonwealth LNG export facility.
The purchase orders are being executed via Commonwealth’s engineering, procurement, and construction (EPC) partner Technip Energies.
“This new milestone maintains the schedule and cost basis of this development and represents an essential step toward Commonwealth’s final investment decision (FID) on the project planned for the first quarter of 2026,” Caturus said at the time.
