Glencore will purchase 2 million tonnes per annum of LNG from Commonwealth and equivalent natural gas from Kimmeridge Texas Gas. (Source: Shutterstock)
Glencore Ltd. has entered into a 20-year offtake agreement with Kimmeridge Texas Gas’ Commonwealth LNG, according to a May 13 press release. Financial terms of the deal were not disclosed.
Glencore will purchase 2 million tonnes per annum (mtpa) of LNG and equivalent natural gas from Kimmeridge under a netback agreement at international prices, the companies said.
“Our partnership with Glencore furthers the transformation of KTG into an integrated natural gas champion that provides reliable, clean energy from wellhead to water, said Kimmeridge Texas Gas CEO David Lawler. “We look forward to reaching critical international gas markets in partnership with Glencore.”
Commonwealth now has a total of 3 mtpa of offtake under long-term agreements, with a targeted final investment decision in the third quarter and first LNG production in 2029.
The purchase follows Glencore and Kimmeridge’s initial natural gas and LNG partnership in September 2024.
“This critical milestone furthers our commitment to developing a state-of-the-art LNG export facility that will prioritize environmental stewardship and create lasting value for local communities. We are pleased with our progress and look forward to hitting the key targets on our commercialization timeline,” said Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth.
Recommended Reading
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.