Caturus to nearly double export capability of Commonwealth LNG project

Brian Cain, the chief corporate affairs officer of Caturus, said Tuesday that it will almost double its export capacity for its Commonwealth LNG project, located in Cameron Parish in Louisiana. Cain spoke at a G20 Ministerial Event in Houston.

He said that the expansion would include five new liquefaction trains. This will increase peak production to 17.25 metric tons annually from 9.5 mtpa initially planned.

This is the first fully integrated LNG project in the U.S. to combine natural gas production with LNG processing facilities. The majority of U.S. LNG projects are standalone infrastructures that purchase gas from third party producers, charge liquefaction fees, and sell supercooled gas under long-term agreements with limited exposure to the spot market.

The U.S. has become the world's largest LNG supplier, and its supplies are becoming increasingly important to meet global demand after disruptions in energy markets due to Russia's invasion into Ukraine and the ongoing war with Iran.

Cain stated that "for customers worldwide, we believe this expansion project is good news, because it will provide a reliable source of natural gas for decades to come," adding that Commonwealth LNG would in the months ahead focus on securing agreements with customers, financing, and regulatory approvals.

Mubadala Energy is part of the Abu Dhabi sovereign wealth fund and holds a 24,1% stake in Caturus. It also participated in financing. Kimmeridge, an energy investor, and the Canada Pension Plan Investment Board provided additional funding. CPP contributed $1.2 billion to Caturus and increased its stake from 29% to 31%.

Caturus approved the construction of the LNG plant in May, after securing financing for the project worth $9.75 billion?

Ben Dell, chairman of the project's board, said that initial development costs would be around $12.5 billion including financing fees.

In the first phase, long-term agreements have been signed with EQT LNG Trading and Glencore, Mercuria Malaysian Petronas, as well as Saudi Aramco Trading.

The LNG exports are expected to start in 2030.

(source: Reuters)