Commonwealth LNG receives US approval to export non-FTA products for 20 years

Commonwealth LNG, a U.S. company, has been granted a 20-year export license from the Department of Energy for liquefied?gas to be exported from its proposed Louisiana plant to countries that do not have free trade agreements.

The company also received approval for 25 years of exports to FTA countries.

The authorizations become effective either when the facility begins exporting commercially, or after seven years from the date of the grant.

Commonwealth is attempting to build the first integrated LNG facility in the country, with its largest shareholder Kimmeridge supplying?gas produced from Eagle Ford shale to this plant.

The company has also signed agreements to supply EQT, Glencore and Japan's largest power generator JERA as well as Malaysia's Petronas, Australia's Woodside Energy, and Malaysia's Petronas.

Commonwealth has sold 5 million tons per year of the planned capacity but is still short of selling all 9.5 mtpa when completed.

Once they have enough contracts to finance the construction, LNG developers will make a final decision about their projects.

The energy department had granted the company's export facility a final non-FTA authorization in September of last year.

The Louisiana?facility was approved by the Federal Energy Regulatory Commission for 2025. It is expected to produce 9.5 millions tonnes of LNG per year. (Reporting and editing by Shilpa Majumdar in Bengaluru)

(source: Reuters)