Commonwealth LNG and KTG Secure Major LNG Supply Agreements with Glencore

U.S.-based Commonwealth LNG and Kimmeridge Texas Gas (KTG), affiliates of the energy-focused alternative investment manager Kimmeridge, have signed binding agreements with Swiss-headquartered Glencore for the supply of liquefied natural gas (LNG) from an export facility under development in Louisiana.

Glencore will purchase 2 million tonnes per annum (mtpa) of LNG for 20 years from the future Commonwealth LNG project, as well as equivalent natural gas supply from Kimmeridge under a netback agreement at international prices. This formalizes an earlier heads of terms (HoT) agreement signed in September 2024.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, expressed his satisfaction with the progress, stating, “This critical milestone furthers our commitment to developing a state-of-the-art LNG export facility that will prioritize environmental stewardship and create lasting value for local communities.”

The recent agreements with Glencore follow a deal with a major Asian energy company for the purchase of 1 million tons per annum (mtpa) of LNG for 20 years, bringing the total offtake under long-term agreements to 3 mtpa. The final investment decision for the project is planned for Q3 2025, with first LNG production expected in Q1 2029.

David Lawler, KTG CEO, highlighted the partnership with Glencore as a step towards becoming an integrated natural gas champion, providing reliable, clean energy from wellhead to water. Glencore’s Global Head of LNG, Gas and Power, Maxim Kolupaev, emphasized the importance of the agreements in advancing the company’s global gas strategy and commitment to a cleaner, more sustainable energy future.

The proposed Commonwealth LNG liquefaction and export facility in Louisiana is set to have five 50,000-cubic-meter storage tanks, accommodating vessels up to 216,000 cubic meters. The strategic location near the Calcasieu Ship Channel positions the facility to access critical international gas markets.

Last month, Mubadala Energy acquired a 24.1% interest in Kimmeridge’s SoTex HoldCo, marking its first major investment in the U.S. This investment grants Mubadala Energy access to Kimmeridge Texas Gas and, by extension, Commonwealth LNG.