Commonwealth LNG announces 20-year HOA with MET Group
Commonwealth LNG has entered into a Heads of Agreement (HOA) with MET Group, an integrated European energy company headquartered in Switzerland, for the sale and purchase of 1 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) for 20 years from the Commonwealth LNG facility currently under development in Cameron, Louisiana.
Commonwealth LNG Founder and Executive Chairman Paul Varello said: “This agreement recognizes that US LNG can and will play a continuing role in Europe’s energy transition by providing reliable and affordable natural gas to the region.” He added: “We are excited to work with MET Group to deliver LNG on a long-term basis to contribute to the security of natural gas supply of their customers.”
MET Group Chairman and CEO Benjamin Lakatos commented: “LNG supply into Europe is a significant contributor to gas supply diversification and an important contributor to European energy security. LNG is also becoming an important part of MET Group’s strategy going forward.”
MET Group is actively increasing its participation in the LNG market. In 2022 alone, MET has imported more than 30TWh of LNG cargoes to countries including Croatia, Greece, Spain, Belgium and UK. This year, the company also secured long-term LNG capacities in Germany and expanded its spot capacity reach to Finland.
The terms anticipated under the non-binding HoA would commence at the start of commercial operation of the facility in 2027. Final terms remain subject to negotiation of a definitive Sale and Purchase Agreement (SPA) between the parties.
Commonwealth is focused on completing the remaining steps necessary to achieve its goal of making a final investment decision on the project in the first quarter of 2024, with first cargo deliveries expected in 2027. An accelerated construction schedule will allow the project to be built in three years using a modular approach with major components being fabricated offsite.
The Commonwealth LNG project is permitted and will include 6 natural gas liquefaction trains and associated facilities capable of producing approximately 9.3 Mtpa of LNG.