Commonwealth LNG secures investment from Kimmeridge Energy

US LNG developer Commonwealth LNG on August 14 announced the successful closure of capital investment from private funds managed by Kimmeridge Energy Management Company (Kimmeridge), an alternative asset management firm specialising in the energy sector.

This investment marks the fulfillment of the required development funding for Commonwealth LNG to proceed with the final investment decision (FID) concerning its LNG export facility with a capacity of 9.3mn tonnes/year in Cameron, Louisiana.

In addition to this investment, Commonwealth LNG and Kimmeridge have reached a preliminary agreement on terms for a 20-year commitment to off-take 2mn t/yr of LNG from the facility, along with the associated gas supply. The agreement also outlines key conditions for Kimmeridge's involvement in providing further equity to support the construction of the Commonwealth LNG facility.

“This agreement secures an additional 2mn t/yr of offtake capacity from a committed customer. Recent advancements in LNG marketing, the completion of front-end engineering design (FEED), and the finalisation of the engineering, procurement, and construction (EPC) contract with Technip Energies have paved the way for Commonwealth to commence LNG deliveries to our customers in early 2027,” Farhad Ahrabi, CEO of Commonwealth LNG, said.

Established in 2012, Kimmeridge's current investments include Civitas Resources, Silverbow Resources, Sitio Royalties Corp., Titan Exploration, and Kimmeridge Texas Gas, which holds a significant acreage position in the Eagle Ford region with proximity to the growing demand for Gulf Coast LNG.

On August 2, Kimmeridge announced the successful closing of its sixth flagship fund, amassing over $1bn in new capital commitments to acquire and develop oil-and-gas assets.