Commonwealth LNG gains final approval and targets 2029 start-up

Commonwealth LNG, a 9.5 million tonnes a year liquefied natural gas export project on the Calcasieu Ship Channel near Cameron, Louisiana, has received final approval from US government agency the Federal Energy Regulatory Commission.

The approval accompanies the prior approval from the US Department of Energy, which gave a conditional non-free trade agreement export authorisation.

With these approvals, Commonwealth LNG is targeting a final investment decision in the third quarter of this year, with first LNG production expected in 2029.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, said the milestone strengthened energy security domestically and for the US’s allies.

Once operational, Commonwealth LNG is expected to unlock approximately $11bn in investments in Louisiana and an estimated $3.5bn in annual export revenue.

Investment firm Kimmeridge Energy Management Company holds a 90% stake in Commonwealth LNG. It acquired its stake in June as part of its plan to combine its upstream natural gas production in South Texas with midstream liquefaction and export capabilities.

The project has already signed long-term binding LNG offtake agreements with global purchasers, including energy companies Glencore, Jera, and Petronas.