Kimmeridge Texas Gas (KTG) and Commonwealth LNG have finalized binding agreements with Glencore LTD to form a strategic natural gas and LNG partnership.
Under the terms of the agreements, Glencore will purchase 2 million tonnes per annum (Mtpa) of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from KTG under a netback agreement at international prices.
Inclusive of agreements with Glencore, Commonwealth has 3 Mtpa of offtake under long-term agreement, with line of sight towards finalizing its commercial book ahead of a targeted final investment decision in Q3 2025 and anticipated first LNG production in 2029.
Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, said: "Following from the initial partnership announcement with Glencore last year, this critical milestone furthers our commitment to developing a state-of-the-art LNG export facility that will prioritize environmental stewardship and create lasting value for local communities. We are pleased with our progress and look forward to hitting the key targets on our commercialization timeline."
David Lawler, KTG CEO, said: "Our partnership with Glencore furthers the transformation of KTG into an integrated natural gas champion that provides reliable, clean energy from wellhead to water. We look forward to reaching critical international gas markets in partnership with Glencore."
Maxim Kolupaev, Glencore Global Head of LNG, Gas and Power, commented: "Finalizing our agreements with Kimmeridge Texas Gas and Commonwealth marks an important step in advancing our global gas strategy. By partnering with two industry leaders in LNG and natural gas, we are expanding our portfolio and reinforcing our commitment to a cleaner, more sustainable energy future."
Giles Jones, Glencore Head of Energy, US, commented: "This partnership represents the further growth of our US energy trading business, an area which continues to be a focus for significant investment. Together, the natural gas and LNG produced by Kimmeridge and Commonwealth respectively will enable Glencore to supply high quality, US molecules to customers around the world."
