Buyers commit to 50% of Commonwealth LNG from proposed Cameron export terminal

(Courtesy Commonwealth LNG)

Commonwealth LNG has received commitments from European buyers to take almost half of the liquefied natural gas from its planned 8.4-million-tons-per-year export terminal in Louisiana.

The 8.4 mtpa LNG export plant will be located on the western shore at the mouth of the Calcasieu Ship Channel in Cameron Parish, Louisiana.

The Federal Energy Regulatory Commission issued a notice of intent to prepare an environmental impact statement in February. Commonwealth LNG anticipates filing the formal application with FERC in March 2019.

The Commonwealth project is one of more than 10 LNG export terminals under development or construction in the United States along the coast of the Gulf of Mexico to take advantage of soaring demand for the supercooled fuel amid booming gas production.

“We are exchanging documents with counterparties that will represent three to four million tonnes” of capacity, CEO Paul Varello told Reuters in an interview, adding he expects to sign so-called heads of agreements shortly.

The company expects to make a final investment decision by the third or fourth quarter of next year after getting final environmental approvals and intends to begin shipping LNG in 2024.

The Commonwealth project is one of many that could be approved this year and next, as worldwide consumption of LNG is expected to more than double to 550 million tonnes a year by 2030.

Reuters has the full story.