Kimmeridge Texas Gas Secures Funding for LNG Terminal in Louisiana

Kimmeridge Texas Gas (KTG), a subsidiary of the energy-focused alternative investment manager Kimmeridge, has successfully obtained funding for its proposed liquefied natural gas (LNG) terminal near Cameron, Louisiana. The company recently priced its inaugural $500 million senior unsecured notes offering at 8.50%, with the intention of using the proceeds to repay outstanding revolver borrowings and advance key projects, including the Commonwealth LNG initiative.

KTG’s Chief Financial Officer, Bryan Gunderson, expressed confidence in the company’s future, stating, “This inaugural bond offering reflects the strength of our differentiated platform and the confidence investors have in our future. The financing, secured on favorable terms, will help accelerate our growth trajectory, including our highly compelling offtake agreement with Commonwealth LNG.”

The company’s successful bond offering was supported by a favorable shift in natural gas prices, making KTG the first issuer in the 2025 high-yield market. The oversubscribed final order book was broadly allocated to a blue-chip investor base following engagements with over 30 high-yield investors.

Commonwealth LNG Project Development

Commonwealth LNG, a project in which Kimmeridge acquired a majority stake in June 2024, is progressing towards the development of a 9.5 million tonnes per annum (mtpa) liquefaction and export facility at the Calcasieu Ship Channel in Louisiana. The facility will feature five 50,000 cubic meter storage tanks and accommodate vessels with capacities of up to 216,000 cubic meters.

Despite initial delays due to environmental review requirements for export permits, the project is now targeting a final investment decision (FID) in Q3 2025, with LNG production expected to commence in Q4 2028. David Lang’s recent appointment as General Counsel and Chief Commercial Officer (CCO) of Commonwealth LNG further underscores the project’s progress.

Additionally, Glencore has signed a heads of terms (HoT) agreement to secure 2 mtpa of LNG for 20 years from the future export terminal, highlighting growing interest and support for the Commonwealth LNG initiative.