Glencore secures binding agreement for Commonwealth LNG offtake

Commodities giant Glencore has finalised binding agreements with Commonwealth LNG and Kimmeridge Texas Gas (KTG) to form a strategic natural gas and liquefied natural gas (LNG) partnership, according to an official announcement.

The 20-year deal will see Glencore purchase 2 million tonnes per annum (Mtpa) of LNG from Commonwealth's export facility in Louisiana, alongside equivalent natural gas supply from KTG under a netback agreement at international prices.

This agreement brings Commonwealth's total offtake under long-term contracts to 3 Mtpa, strengthening its position as it moves towards a final investment decision (FID) scheduled for the third quarter of 2025. First LNG production from the 9.5 Mtpa terminal project is anticipated in 2029.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, described the finalisation as "a critical milestone" that advances their commitment to "developing a state-of-the-art LNG export facility that will prioritise environmental stewardship".                                                                                                                                                                               

Maxim Kolupaev, Glencore Global Head of LNG, Gas and Power, said the agreement "marks an important step in advancing our global gas strategy", whilst reinforcing the company's "commitment to a cleaner, more sustainable energy future".

The Commonwealth LNG export terminal will be located on the Calcasieu Ship Channel near Cameron, Louisiana. KTG currently produces over 500 million cubic feet equivalent of natural gas daily from approximately 200,000 net acres in Texas.