Commonwealth LNG, MET Group sign LNG HOA

Commonwealth LNG, a US LNG company, has entered into a heads of agreement (HOA) with Swiss MET Group for the supply of 1mn tonnes/year of LNG for 20 years, the companies announced on September 4.

The agreement, which is non-binding, would see Commonwealth LNG supply LNG to MET Group from its facility in Cameron, Louisiana. The facility is currently under development and is expected to be operational in 2027.

Paul Varello, founder of Commonwealth LNG, said: "This agreement recognises 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."

Benjamin Lakatos, CEO of MET Group, 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."

The HOA is subject to the negotiation of a definitive sale and purchase agreement (SPA) between the parties. Commonwealth LNG said it 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 the first cargo deliveries expected in 2027.

The Commonwealth LNG project is permitted and will include six natural gas liquefaction trains and associated facilities capable of producing approximately 9.3mn t/year of LNG.

Commonwealth LNG last month announced the successful closure of capital investment from private funds managed by Kimmeridge Energy Management Company. This investment marks the fulfillment of the required development funding for Commonwealth LNG to proceed with the final investment decision concerning its LNG export facility