Commonwealth LNG signs 20-year supply agreement with Mercuria in response to US LNG export growth

Commonwealth LNG announced on Tuesday that it had signed a sale-and-purchase agreement for 20 years to supply Mercuria 1 million metric tonnes of liquefied gas per year.

The deal stipulates that Mercuria would provide Commonwealth with the equivalent amount of natural gas (estimated at 133 millions cubic feet per day) and Commonwealth will convert it to LNG, which Mercuria can then purchase.

Commonwealth, a company owned by energy asset management firm Kimmeridge and majority-owned by Commonwealth, is attempting to build America's first integrated export facility for LNG. Kimmeridge will provide gas from Eagle Ford shale to the plant.

Mercuria, one of the world's largest energy and commodities firms with a significant interest in oil & gas trading, is a leading company. This agreement reflects Mercuria’s commitment to secure long-term, reliable LNG supplies from high-quality U.S. project," said Brian Falik. President of Mercuria Americas.

The U.S. has surpassed previous leaders Qatar and Australia as the largest LNG exporter in the world.

Last year, Donald Trump lifted the pause on new LNG Export Permits, which was imposed by the previous administration in 2024 for?reviewing public interest criteria.

Commonwealth has long-term contracts to sell 7 million tonnes of LNG per year from its 9.5 million-ton permitted capacity. Major energy companies such as Glencore, Japan's largest?power generator JERA and Malaysia's Petronas have committed, along with EQT and Mercuria. Analysts say that the company only needs 1 mtpa to reach a financial decision on the project. Commonwealth wants to approve the project by the first quarter 2026. Reporting by Pranav Mathematics in Bengaluru and Curtis Williams, Houston; editing by Tasimzahid and Nick Zieminski

(source: Reuters)