Commonwealth LNG has finalized a binding agreement with global commodities giant Glencore Ltd. for a 20-year natural gas and LNG supply partnership.
Under the deal, Glencore will purchase 2 million tonnes per annum (MTPA) of liquefied natural gas from Commonwealth LNG’s planned export facility in Cameron Parish. The deal came as Glencore made a similar deal with Kimmeridge Texas Gas under a netback agreement priced at international market rates.
With the Glencore deal in place, Commonwealth now has 3 MTPA of LNG under long-term contracts and is aiming to reach a final investment decision by the third quarter of 2025. The project’s first LNG production is anticipated in 2029.
“Following from the initial partnership announcement with Glencore last year, this critical milestone furthers our commitment to developing a state-of-the-art LNG export facility,” Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth, said in the announcement. “We are pleased with our progress and look forward to hitting the key targets on our commercialization timeline.”
KTG CEO David Lawler described the agreement as a major step in the company’s transition into an integrated natural gas provider, noting it will enable the delivery of “reliable, clean energy from wellhead to water.”
Glencore executives emphasized the deal’s importance to the company’s global energy strategy. “By partnering with two industry leaders in LNG and natural gas, we are expanding our portfolio and reinforcing our commitment to a cleaner, more sustainable energy future,” said Maxim Kolupaev, Glencore’s global head of LNG, gas and power.
The partnership further strengthens Glencore’s U.S. energy trading presence, particularly in the Gulf Coast LNG market.
