LNG supplier, Commonwealth LNG, inks 20-year contract with significant Asian purchaser
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Heads up, folks! Commonwealth LNG just scored a major deal with a top-tier Asian energy corporation
Get ready to hear some exciting news! On Monday, the United States energy company, Commonwealth LNG, announced a 20-year sale agreement with an unnamed Asian energy giant. This bigwig corporation is known for its oil and gas operations and stands among the world's leading suppliers of liquefied natural gas (LNG).
The agreement has the Asian energy titan purchasing a massive 1 million tonnes per annum of LNG from Commonwealth's soon-to-be constructed facility in Cameron, Louisiana. Last week, there were rumors swirling about Malaysia's state-owned Petroliam Nasional Berhad (Petronas) in talks with Commonwealth for a LNG deal, but it's still uncertain if Petronas is the mystery buyer.
Ben Dell, managing partner of energy investment firm Kimmeridge and chairman of Commonwealth, shared his thoughts on this significant milestone. "This offtake agreement is a crucial step for Commonwealth as we push for a final investment later this year and anticipate operations to begin in 2029," Dell said.
Now, let's take a gander at the numbers! The initial development phase of this project is projected to bring over $11 billion in investments to Louisiana and generate an estimated $3.5 billion in annual export revenue once completed. At the peak of construction, the project is predicted to employ around 2,000 workers, and when the facility goes live in late 2029, it's expected to provide approximately 275 jobs.
Commonwealth LNG is a venture owned by Kimmeridge's Kimmeridge SoTex Holdco unit. The official sales pact with the mystery Asian energy corporation will become valid upon the completion of usual conditions, including the positive final investment decision on the project. Now, isn't that some juicy info to sink your teeth into?
Note: The identity of the buyer remains undisclosed as of yet, but reports suggest possible negotiations between Petronas and Commonwealth in the past. Stay tuned for more updates on this developing story!
Interesting fact:According to recent data, Russia's LNG exports took a dip by 4.6% year over year during the January-April period of 2025[6]. As coal and oil prices soar, LNG exports are gaining traction worldwide. (For those curious cats out there, we dug up this snippet of information to enrich this story!)
References[1] Reuters. (2025, May 5). Commonwealth LNG signs LNG sale deal with Asian company.[2] Commonwealth LNG. (n.d.). About Commonwealth LNG.[3] Reuters. (2025, April 29). Petronas in talks with Commonwealth LNG for LNG off-take deal: sources.[4] Platts. (2025, May 5). Commonwealth LNG signs SPA with Asian buyer for 1 million tons/year supply.[5] S&P Global Platts. (2025, May 5). Commonwealth LNG, Asian buyer ink SPA for 1 mtpa supply, valued at $3.5 bn annually.[6] Bloomberg. (2025, May 10). Russia's LNG Exports Down 4.6% Y/Y In First Four Months Of 2025.
- The mystery Asian energy corporation is expected to hold a 20-year agreement with Commonwealth LNG, estimated to bring over $3.5 billion in annual export revenue and around 275 jobs upon completion.
- Reuters reported that this deal had the Asian energy giant purchasing a massive 1 million tonnes per annum of LNG from Commonwealth's forthcoming facility in Cameron, Louisiana.
- The initial development phase of this project is anticipated to attract over $11 billion in investments to Louisiana, while employing around 2,000 workers at peak construction.
- Ben Dell, managing partner of energy investment firm Kimmeridge and chairman of Commonwealth, stated that this offtake agreement is a significant step towards a final investment decision on the project, with operations slated to begin in 2029.
- Reports suggest possible negotiations between Petroliam Nasional Berhad (Petronas) and Commonwealth in the past, but the identity of the Asian energy corporation remains undisclosed as of yet.
