Baker Hughes secures work on Commonwealth LNG facility in Louisiana

Commonwealth LNG has signed a strategic agreement with Baker Hughes related to its LNG facility under development in Cameron Parish, Louisiana.

Illustration; Archive; Courtesy of Commonwealth LNG

As part of the agreement, Baker Hughes and Commonwealth LNG will collaborate on maximizing the project’s output and minimizing emissions.

This is to be achieved through the use of Baker Hughes’ aero-derivative gas turbine technology. The LM9000 equipment order is expected to be granted in conjunction with the financial close of the Commonwealth LNG project, which is expected in the first quarter of 2024.

The collaboration includes other Baker Hughes equipment, services and software, including its compressor technology, spare parts, maintenance services and Cordant Asset Performance Management suite.

Commonwealth LNG said it sees this partnership as vital to ensuring the start of operations at its LNG facility in early 2027.

Just recently, Commonwealth LNG closed an investment of development capital from private funds managed by Kimmeridge Energy Management Company. The investment is said to complete the development funding required for Commonwealth LNG to reach a final investment decision (FID) on the 9.3 million tons per annum (mtpa) export facility.

The parties also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply, with the agreement also including key terms for Kimmeridge’s participation to provide further equity in Commonwealth LNG to support the construction of the facility.

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