LNG News Editor:
The founder and executive Chairman of the Commonwealth LNG project in Louisiana, Paul Varello, has announced his retirement while also selling control of his company to the New York-based Kimmeridge asset management firm.
Kimmeridge said it was closing a “follow-on control investment” in Commonwealth LNG to take its ownership stake to 90 percent and with an anticipated final investment decision for the project in the first half of 2025. No financial details of any transactions were disclosed.
CEO stays
“We are excited to take a controlling interest in Commonwealth LNG as we integrate our business from well-head to water, and look forward to the completion of a best-in-class LNG export facility in Louisiana,” said Ben Dell, Managing Partner at Kimmeridge and Director of its Kimmeridge Texas Gas unit.
Varello in his retirement statement said at Commonwealth LNG he had has always focused on developing a project that brings exceptional value to the LNG industry.
“I’m proud that our team will now be part of Kimmeridge’s broader strategy to provide reliable and sustainable energy on a global basis,” Varello added.
Commonwealth LNG Chief Executive Farhad Ahrabi, who joined the Houston-based project company in 2022 following a seven-year tenure at Sempra’s Cameron LNG, will continue in his current role as Commonwealth CEO under Kimmeridge ownership.
“We are delighted to integrate into the Kimmeridge team as we work towards FID in 2025. Kimmeridge shares our vision of bringing a differentiated offering to the LNG market, and we look forward to commencing delivery to our customers in 2028,” stated Commonwealth LNG CEO Ahrabi.
The company is developing its LNG export plant with around 9.5 million tonnes per annum of output and located on the shore of the Calcasieu River.
Commonwealth LNG has secured several supply agreements and one of the latest was with leading US shale-gas producer EQT.
The Pittsburgh-based gas producer has signed a 15-year accord starting in 2027 for LNG tolling capacity at Commonwealth’s proposed Louisiana liquefaction plant covering 1 MTPA.
Engineering career
Prior to establishing Commonwealth LNG in 2014, Varello was founder and Chairman of Commonwealth Engineering and Construction, a project management company.
He also previously served as Chairman and CEO of Sterling Construction and was 18 years at LNG and energy engineering company Fluor Corp. where he became President of the Process Division.
