Commonwealth LNG and Kimmeridge Texas Gas (KTG) have finalised binding agreements with Glencore to establish a strategic partnership in natural gas and liquefied natural gas (LNG).
According to the terms of the agreements, Glencore will acquire two million tonnes per annum (mtpa) of LNG from Commonwealth LNG.
The LNG will be obtained from Commonwealth LNG’s export facility in Cameron Parish, Louisiana, US.
Additionally, Glencore will secure a corresponding supply of natural gas from KTG under a netback agreement at international prices.
The companies signed a heads of terms agreement regarding the offtake deal in September 2024.
KTG CEO David Lawler 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. We look forward to reaching critical international gas markets in partnership with Glencore.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe agreement with Glencore brings Commonwealth LNG’s total long-term offtake to 3mtpa, as the company moves closer to finalising its commercial book.
Commonwealth LNG chairman and Kimmeridge managing partner Ben Dell said: “Following from the initial partnership announcement with Glencore last year, this critical milestone furthers our commitment to developing a state-of-the-art LNG export facility that will prioritise 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 commercialisation timeline.”
The agreement also marks a step towards the targeted final investment decision in the third quarter of 2025 (Q3 2025), with the first LNG production expected in 2029.
Glencore LNG, Gas and Power global head Maxim Kolupaev added: “Finalising our agreements with Kimmeridge Texas Gas and Commonwealth marks an important step in advancing our global gas strategy. By partnering with two industry leaders in LNG and natural gas, we are expanding our portfolio and reinforcing our commitment to a cleaner, more sustainable energy future.”
Glencore Singapore also signed a contract with Australian oil and gas producer Santos for the supply of LNG cargoes in September 2024.
Starting in Q4 2025, Santos will supply LNG cargoes equivalent to up to approximately 500,000 tonnes per annum over a three-year period.
The LNG will be sourced from Santos’ portfolio of LNG assets and delivered on an ex-ship basis.
