Commonwealth LNG announced it has signed a Sale and Purchase Agreement with JERA Co. under which JERA will purchase 1 million tonnes per annum (Mtpa) of LNG for 20 years from Commonwealth's 9.5 mtpa facility currently under development in Cameron, Louisiana.
Commonwealth has 4 Mtpa of offtake under long-term agreement, with line of sight toward finalizing its commercial book ahead of a targeted final investment decision in Q3 2025 and anticipated first LNG production in 2029.
"We look forward to our partnership with JERA, a recognized global energy leader who shares our commitment to low-cost energy with the lowest carbon footprint," said Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth LNG.
The Commonwealth export facility is expected to unlock approximately $11 billion in total investments in Louisiana and an estimated $3.5 billion in annual export revenue. It is projected to employ approximately 2,000 workers at the peak of construction and provide approximately 275 high-paying jobs when the facility begins operations in 2029.
"We are delighted to be partnering with JERA, considering their prominent role and extensive experience along the full LNG value chain," said Commonwealth President and CEO Farhad Ahrabi. "As we move forward to FID and commercial operations, we look forward to building on our relationship with them."
Commonwealth is owned by Kimmeridge SoTex Holdco LLC (SoTex), which was founded by Kimmeridge, an asset manager focused on the energy sector. Through SoTex, which also holds upstream natural gas development company, Kimmeridge Texas Gas, Kimmeridge is building America's first integrated gas independent to deliver low-cost natural gas from wellhead-to-water, meeting burgeoning demand for responsibly produced LNG across global markets.
The SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
