US-based liquefied natural gas (LNG) export terminal project Commonwealth LNG has entered into a Heads of Agreement (HOA) with MET Group, an integrated European energy company headquartered in Switzerland, for the sale and purchase of 1 million tonnes per annum (Mtpa) of LNG for 20 years from the Commonwealth LNG facility currently under development in Cameron, Louisiana.
“This agreement recognises that US LNG can and will play a continuing role in Europe’s energy transition by providing reliable and affordable natural gas to the region,” said Commonwealth LNG Founder and Executive Chairman Paul Varello. “We are excited to
work with MET Group to deliver LNG on a long-term basis to contribute to the security of
natural gas supply of their customers.”
“LNG supply into Europe is a significant contributor to gas supply diversification and an important contributor to European energy security,” commented MET Group Chairman and CEO Benjamin Lakatos. “LNG is also becoming an important part of MET Group’s strategy
going forward.”
MET Group is actively increasing its participation in the LNG market. In 2022 alone, MET
has imported more than 30 terawatt-hours (TWh) of LNG cargoes to countries including Croatia, Greece, Spain, Belgium and the UK. This year, the company also secured long-term LNG capacities in Germany and expanded its spot capacity reach to Finland.
The terms anticipated under the non-binding HoA would commence at the start of
the commercial operation of the facility in 2027. Final terms remain subject to negotiation of a definitive Sale and Purchase Agreement (SPA) between the parties.
Commonwealth is focused on completing the remaining steps necessary to achieve its goal
of making a final investment decision on the project in the first quarter of 2024, with first
cargo deliveries expected in 2027. An accelerated construction schedule will allow the
project to be built in three years using a modular approach with major components being
fabricated offsite.
The Commonwealth LNG project is permitted and will include 6 natural gas liquefaction trains and associated facilities capable of producing approximately 9.3 Mtpa of LNG.
