Under the sales and purchase agreement, EQT will purchase 1 million tonnes per annum (mtpa) of LNG for 20 years on a free on board basis at a price indexed to Henry Hub from Commonwealth’s facility.
The deal remains subject to Commonwealth making a positive final investment decision (FID) on its LNG export project.
This new SPA comes just a week after EQT signed a long-term deal with compatriot NextDecade to buy LNG from the planned fifth train at the latter’s Rio Grande LNG facility in Texas.
Under this SPA, EQT will purchase 1.5 million tonnes per annum (mtpa) of LNG for 20 years on a free on board basis at a price indexed to Henry Hub,
In addition, EQT recently signed a long-term deal with US LNG exporter Sempra Infrastructure, a unit of Sempra, to buy LNG from the proposed second phase of the Port Arthur LNG project in Texas.
EQT will buy 2 million tonnes per annum of LNG for 20 years under this deal.
“The signing of this agreement with Commonwealth LNG adds to the momentum we are building in the LNG market and further strengthens EQT’s position as a leader connecting US natural gas supply to growing global demand,” said Toby Z. Rice, President and CEO of EQT.
“With this latest agreement, EQT has established a diversified LNG export portfolio that will provide us with flexibility to market and optimize our own cargoes,” he said.
Commonwealth targeting FID this year
Kimmeridge’s Commonwealth said it is advancing toward FID in 2025, with first LNG production expected in 2029.
Inclusive of the agreement with EQT, Commonwealth has 5 mtpa of offtake under long-term, binding agreement, incluing previous deals wiht Glencore, Jera, and Petronas, with line of sight to subscribe its remaining capacity.
“These foundational contracts demonstrate international confidence in the project’s execution and value proposition,” Commonwealth said.
Commowealth recently received the final non-free trade agreement export authorization from the US Department of Energy for its planned LNG export project.
The LNG terminal developer received the Federal Energy Regulatory Commission’s final order, upholding authorization, in June of this year.
The company also recently sought approval from FERC to start initial site preparation activities for its LNG export project.
Moreover, Commonwealth authorized an order for six Baker Hughes refrigerant turbo compressors required for the liquefaction process of its planned LNG export project.
The order will be placed by Technip Energies, which Commonwealth announced will lead the engineering, procurement, and construction (EPC) execution of its LNG facility.
