(Energy Analytics Institute, 19.Sep.2024) — Kimmeridge Texas Gas (KTG) and Commonwealth LNG entered into a Heads of Terms agreement with Glencore LTD, creating a strategic natural gas and LNG partnership.
Under the terms of the agreement, Glencore will purchase 2 million tonnes per annum (mtpa) of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from KTG under a netback agreement at international prices, Kimmeridge said 19 Sep. 2024 in an official statement.
The definitive agreements are expected to be finalized among the parties in fourth quarter 2024. Commonwealth anticipates a final investment decision (FID) on its LNG export facility in Cameron, Louisiana in the first half 2025, with the first LNG production expected in 2028.
“Our partnership with Glencore represents another tangible step forward for the KTG platform in becoming a fully integrated provider of reliable, secure and clean energy from wellhead to water.” said KTG CEO and President David Lawler in the statement.
“We are excited to partner with Kimmeridge Texas Gas and Commonwealth under a novel framework that leverages Glencore’s premier LNG marketing platform and investment grade credit rating to facilitate access to international pricing,” said Glencore Global Head of LNG, Gas and Power, Maxim Kolupaev in the statement. “This agreement is the result of a strong relationship between Glencore and Kimmeridge, building upon our common vision of helping economies accelerate their energy transition ambitions.”
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By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.
