Caturus, Kimmeridge’s LNG and gas unit in which UAE’s Mubadala has a 24.1 percent stake, said on April 7 that Commonwealth LNG has finalized customer offtake agreements, with the company set to launch the financing process with lenders as it advances the project toward a final investment decision (FID) anticipated in the coming weeks.
EQT LNG Trading, Glencore, Mercuria Energy Trading, Petronas LNG, and Aramco Trading Americas have each entered into long-term sale and purchase agreements with Commonwealth for offtake from the facility, Caturus said without providing further details.
This move came after Commonwealth revealed in a filing with the US Department of Energy that a 1 mtpa long-term sales and purchase deal between the company and Japan’s Jera had been terminated.
2 mtpa
However, Commonwealth said in its semi-annual progress report filed with DOE on April 1 that it entered into an additional SPA agreement with Glencore on March 26 for up to 1 mtpa of LNG for a term of 20 years.
In May 2025, Glencore agreed to purchase 2 mtpa of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from Kimmeridge Texas Gas, now Caturus, under a netback agreement at international prices.
This means that Glencore will now buy up to 3 mtpa from Commonwealth.
In addition, Commonwealth said in the report that it has amended its existing SPA with EQT LNG Trading to increase the annual contract quantity to 2 mtpa per year of LNG.
In September last year, EQT agreed to purchase 1 mtpa of LNG for 20 years on a free on board basis at a price indexed to Henry Hub from Commonwealth’s facility.
These additional volumes from EQT replaced the volumes from the Jera SPA.
“To date, Commonwealth has secured long-term binding offtake agreements for
approximately 8 of 9.5 mtpa of permitted capacity. Commonwealth is actively engaged
in commercial discussions for the remaining capacity, and FID is planned for 2026, with
first exports anticipated in 2029,” the company said in the report which was published before this week’s announcement.
Site preparation activities
Commonwealth said in a separate construction report filed with the US FERC on Thursday that site preparation activities were initiated early in March.
Overall progress of site preparation is currently below 5 percent, the company said.
Activities planned for April include perimeter mowing of property and debris/utilities, installation of silt fencing, setting deep well monuments, demolition of old utilities, wood frame buildings, fencing, gates, and all debris, and other activities.
