Commonwealth LNG and EQT conclude long-term LNG supply deal
U.S.-based Commonwealth LNG has entered into a heads of agreement (HoA) with compatriot EQT for one million tons per annum (mtpa) of LNG under a 15-year tolling agreement, and associated gas supply to Commonwealth LNG’s facility in Cameron, Louisiana, U.S.
According to Commonwealth, the terms anticipated under the HoA are set to commence at the start of commercial operation of the facility, with final terms remaining subject to negotiation of a definitive agreement between the parties.
Commonwealth LNG Founder and Executive Chairman Paul Varello said: “We are very pleased to add a U.S. producer of EQT’s stature to Commonwealth’s customer portfolio. This agreement will connect EQT’s vast natural gas assets to Commonwealth’s LNG facility, thus creating a robust value chain from wellhead to water.”
“Accessing EQT’s natural gas production, which achieved a 20% year-over-year reduction in scope 1 and scope 2 greenhouse gas emissions, supports Commonwealth’s goal of achieving best-in-class environmental standards.”
Commonwealth said it anticipates a final investment decision (FID) on the Louisiana project in the first quarter of 2024, with the first cargo deliveries expected in 2027.
It noted that an accelerated construction schedule will allow the project to be built in three years using a modular approach with major components being fabricated offsite.
At the beginning of September, Commonwealth LNG signed a HoA with Switzerland-based MET Group for the sale and purchase of one mtpa of LNG for 20 years from the Louisiana facility.