Swiss-based commodity trading company Gunvor has signed a strategic liquefied natural gas (LNG) marketing and gas supply agreement with Commonwealth LNG.
The deal is with respect to the LNG export terminal project in Cameron Parish, Louisiana, US, for three million tonnes per annum (Mtpa) of LNG offtake from the facility located on the west bank of the Calcasieu Ship Channel at the US Gulf Coast near Cameron, Louisiana.
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Under the deal, Gunvor will support Commonwealth LNG in securing binding LNG offtake and gas supply agreements for the full capacity of the 8.4Mtpa facility.
The marketing and supply deal will account for more than a third of the facility’s planned production.
Gunvor LNG Trading co-head Kalpesh Patel said: “In this highly competitive market, it is critical for companies, particularly ones pursuing an LNG greenfield project to recognise their core competencies and strengths.
“Commonwealth LNG’s engineering and procurement team is best-in-class.
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By GlobalData“And, now, with the comprehensive support of Gunvor’s LNG and US Gas marketing team, Commonwealth LNG will excel not only at controlling costs and project execution but also at commercialising their project and creating the lowest cost offering on the US Gulf Coast.”
Commonwealth LNG anticipates taking a final investment decision (FID) in the first quarter of 2021. First LNG shipments are expected to take place in the second quarter of 2024.
Commonwealth president and CEO Paul Varello said: “We believe Gunvor’s substantial capabilities in LNG marketing and overall market presence, coupled with Commonwealth’s strengths in engineering, construction and project execution create a dynamic combination that ultimately differentiates Commonwealth from every other US LNG project currently chasing FID.”
In June, Commonwealth LNG and Gunvor Singapore signed heads of agreement (HoA) for 1.5Mtpa of LNG offtake.
