International commodities trader Gunvor and Commonwealth LNG have signed a deal related to Commonwealth’s $4 billion liquefied natural gas export project in Cameron Parish, Louisiana, Kallanish Energy reports.
Under the agreement, Gunvor will assist Commonwealth in securing binding LNG offtake and gas supply agreements for the full capacity (8 million tonnes annually, Mtpa) of the facility.
In addition, Gunvor will commit to take up to 3 Mtpa of LNG offtake from the facility.
“In this highly competitive market, it is critical for companies – particularly ones pursuing an LNG greenfield project – to recognize their core competencies and strengths,” said Kalpesh Patel, Gunvor co-head of LNG Trading.
“Commonwealth LNG’s engineering and procurement team is best in class. And, now, with the comprehensive support of Gunvor’s LNG and U.S. gas marketing team, Commonwealth LNG will excel not only at controlling costs and project execution, but also at commercializing their project and creating the lowest cost offering on the U.S. Gulf Coast.”
“We believe Gunvor’s substantial capabilities in LNG marketing and overall market presence, coupled with Commonwealth’s strengths in engineering, construction and project execution, create a dynamic combination that ultimately differentiates Commonwealth from every other US LNG project currently chasing FID (final investment decision),” said Paul Varello, Commonwealth’s president and CEO.
Commonwealth LNG expects to make a final investment decision in Q1 2021, and deliver its first shipments of LNG in Q2 2024.
This post appeared first on Kallanish Energy News.