Commonwealth and Gunvor sign LNG offtake agreement

The subsidiaries of Commonwealth Projects and Gunvor Group have signed an agreement for 1.5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) offtake.

The heads of agreement (HOA) was signed by Commonwealth LNG and Gunvor Singapore.

It anticipates the negotiation and finalisation of a definitive LNG sale-and-purchase agreement for LNG offtake from the former’s export project under development in Cameron Parish, Louisiana, US, for a period of 15 years.

Gunvor LNG Trading co-head Kalpesh Patel said: “The agreement with Commonwealth LNG is a significant step in executing Gunvor’s overall strategy of uncovering and securing low-cost resources and seamlessly delivering them to high-value markets.

“We look forward to working with the Commonwealth team as they continue to progress their project.”

A final investment decision on the project is expected later next year.

Commonwealth president and CEO Paul Varello said: “We are proud to be entering an agreement for a portion of our LNG offtake with the Gunvor Group – one of the world’s premier commodities trading houses.

“Our mantra is to develop LNG solutions for the next generation; in Gunvor, we have found a commercial partner who not only shares that vision but through its creativity and innovation exemplifies it.”

Commonwealth LNG is developing the 8.4Mtpa LNG export terminal project on the US Gulf Coast near Cameron.

In May, Commonwealth LNG vice-president Scott Ray told Gulf Coast Industrial Group members that each of the facility’s six liquefaction trains will be capable of producing a total of 8.4Mt annually.

The company expects to begin shipping LNG in the first quarter of 2024.