The company has closed a development capital investment from private funds overseen by Kimmeridge Energy Management for the 9.3mtpa Commonwealth LNG project
The Commonwealth LNG project aims to begin commercial operations in Q4 2026. (Credit: Alexandra_Koch from Pixabay)
Commonwealth LNG said that it has secured the development funding needed to take a final investment decision (FID) on its namesake LNG export facility in Cameron, Louisiana.
In this regard, the company has closed a development capital investment from private funds overseen by Kimmeridge Energy Management, an alternative asset management firm with a specialisation in the energy sector.
To be built on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico, the Commonwealth LNG project is designed to have a capacity of 9.3 million tons per annum (mtpa).
Commonwealth LNG and Kimmeridge have also reached a preliminary agreement on the terms of a 20-year, 2mtpa LNG offtake commitment from the project, along with the corresponding gas supply.
Furthermore, the agreement covers essential conditions for Kimmeridge Energy Management’s involvement, which entails providing additional equity to support the construction of the Commonwealth LNG facility.
Commonwealth LNG president and CEO Farhad Ahrabi said: “This deal brings an additional 2 mtpa of offtake to the project from a customer who is willing and able to stand behind their commitment.
“The recent LNG marketing progress, the completion of FEED, and the conclusion of the EPC contract with Technip Energies ensures Commonwealth commences delivering LNG to our customers in early 2027.”
Commonwealth LNG obtained authorisation from the US Federal Energy Regulatory Commission (FERC) for its project in November 2022. Initial site preparations were slated to commence during the latter part of 2023, with the formal FID aimed for Q4 2023.
The company intends to employ a highly modularised strategy that will facilitate the facility’s construction within 36 months. This will enable the initiation of commercial operations in Q4 2026.
Kimmeridge Energy Management managing partner Ben Dell said: “Our transaction with Commonwealth LNG gives Kimmeridge the opportunity to be vertically integrated from wellhead to water, enabling us to provide reliable, secure, and clean energy to global markets.
“We have been impressed with the strong management team Commonwealth LNG has assembled and their commitment to successfully sanction and construct the project.”