Commonwealth LNG signs deal for one third of production

(Courtesy Commonwealth LNG)

The proposed Commonwealth LNG export terminal in Cameron Parish has secured a marketing and supply deal that will account for more than a third of the facility’s planned production.

In a Monday morning statement, the Houston liquefied natural gas company announced a deal with Gunvor, a global LNG marketing and trading firm headquartered in Geneva, Switzerland.

Commonwealth LNG is seeking permission from the Federal Energy Regulatory Commission to build a brand new liquefied natural gas export terminal at the mouth of the Calcasieu Ship Channel along the Gulf of Mexico in Louisiana.

According to the terms of the deal, Gunvor will take 3 million metric tons of production from the plant and help Commonwealth LNG land contracts to sell the rest of the facility’s production on the global market.

FERC is not expected to make a permit decision until the first quarter of 2021. The company expected to make a subsequent investment decision and deliver its first shipments of LNG in second quarter of 2024.

Read the announcement.