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Commonwealth LNG Gets Green Light for Global Exports
10 Jan
Summary
- Commonwealth LNG received a 20-year permit for LNG exports to non-FTA nations.
- The facility secured a 25-year export approval for trade with FTA countries.
- The Louisiana facility is designed to produce 9.5 million tonnes of LNG annually.
Commonwealth LNG has received significant U.S. Department of Energy authorizations, granting the company a 20-year permit to export liquefied natural gas (LNG) to countries without free trade agreements. Additionally, a 25-year approval was secured for exports to nations with existing free trade pacts. These permits are set to become effective either upon the facility's commercial export launch or seven years from the grant date.
The proposed Louisiana facility, designed for an annual output of 9.5 million tonnes of LNG, is poised to become the country's first integrated LNG export plant. Its major shareholder, Kimmeridge, plans to supply natural gas from its Eagle Ford shale production. Commonwealth has already secured supply agreements with prominent global energy players, including EQT, Glencore, Japan's JERA, Malaysia's Petronas, and Australia's Woodside Energy.
While Commonwealth has already sold 5 million metric tons per annum of its planned capacity, the total 9.5 mtpa capacity is not yet fully contracted. LNG developers typically require substantial secured deals to finalize financing for construction, a crucial step for Commonwealth as it moves towards a final investment decision for its ambitious project. The Federal Energy Regulatory Commission had previously approved the facility in 2025.
