LNG export facility developer, Commonwealth LNG has received investment capital allowing it to take a final investment decision (FID on its export plant at Cameron, Louisiana.
The capital came from private funds managed by Kimmeridge Energy Management Co, which is an alternative asset management concern focused on the energy sector.
This invesment completes the development funding for Commonwealth’s 9.3 mill tonnes per year export plant, the company said.
Both companies also agreed in principle on the terms for a 20-year, 2 mill tonnes per year offtake, along with the associated gas supply. The agreement also contains the terms for Kimmeridge to participate in further equity in Commonwealth LNG to support the facility’s construction.
“We are delighted to partner with Kimmeridge, a company that is committed to the transition toward a lower carbon future,” Commonwealth LNG Executive Chairman and Founder, Paul Varello, said.
“This agreement signifies another major milestone to the project’s development and an alignment with a strategic partner who shares our vision about the future of global energy security,” he said.
Kimmeridge Managing Partner, Ben Dell, added;” Our transaction with Commonwealth LNG gives Kimmeridge the opportunity to be vertically integrated from wellhead to water, enabling us to provide reliable, clean and secure energy to global markets.
“We have been impressed with the strong management team Commonwealth LNG has assembled and their commitment to succesfully sanction and construct the project,” he said.
LNG Commonwealth President and CEO, Farhad Ahrabi, commented; “This deal brings an additional 2 mill tonnes per year offtake to the project from a customer who is willing and able to stand by 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 our customers in early 2027.
“Commonwealth LNG brings a differentiated offering to the LNG market through our modular design that lowers costs, speeds time to market and avoids contractor concentration risk,” he advised.
Moelis acted as exclusive placement agent to Commonwealth LNG for the transaction.
