Commonwealth LNG has signed a sale and purchase agreement (SPA) with EQT. The agreement provides for the sale of 1 million tonnes per annum (mtpa) of LNG for 20 years from Commonwealth’s 9.5 mtpa export facility currently under development on the Gulf Coast in Cameron Parish, Louisiana, US.
Under the terms of the agreement, EQT will purchase LNG on a free-on-board basis at a price indexed to Henry Hub. The definitive agreement marks a significant milestone in both companies’ efforts to deliver responsibly sourced, low emission natural gas to international markets.
Ben Dell, managing partner of Kimmeridge and Chairman of Caturus, the parent company of Commonwealth LNG says: ‘The agreement with EQT is a strong endorsement of our integrated natural gas platform, featuring a unique wellhead-to-water strategy that meets burgeoning demand for LNG across global markets, while advancing US energy leadership and economic growth. By combining EQT’s scale and Commonwealth’s efficient modular LNG design, we’re delivering a differentiated solution for global energy buyers.’
Toby Z. Rice, president and CEO of EQT, says: ‘The signing of this agreement with Commonwealth LNG adds to the incredible momentum we are building in the LNG market and further strengthens EQT’s position as a leading force in connecting US natural gas to global demand.’
Commonwealth is advancing toward a final investment decision (FID) in 2025, with first LNG production expected in 2029. Inclusive of the agreement with EQT, Commonwealth has 5 Mtpa of offtake under long-term, binding agreement (Glencore, JERA and PETRONAS), with line of sight to subscribe its remaining capacity. These foundational contracts demonstrate international confidence in the project’s execution and value proposition.
The SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
