Commonwealth LNG, affiliated with Kimmeridge, has signed a 20-year sale and purchase agreement (SPA) with US-based natural gas producer EQT.

This deal involves the supply of one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Commonwealth's planned 9.5mtpa export facility in Cameron Parish, Louisiana, US.

EGT president and CEO Toby Z. Rice said: “The signing of this agreement with Commonwealth LNG adds to the incredible momentum we are building in the LNG market and further strengthens EQT’s position as a leading force in connecting US natural gas to global demand.”

EQT will procure LNG on a free-on-board basis, with pricing indexed to the Henry Hub benchmark.

Kimmeridge managing partner Ben Dell said: “The agreement with EQT is a strong endorsement of our integrated natural gas platform, featuring a unique wellhead-to-water strategy that meets burgeoning demand for LNG across global markets, while advancing US energy leadership and economic growth.

“By combining EQT’s scale and Commonwealth’s efficient modular LNG design, we are delivering a differentiated solution for global energy buyers.”

The project is moving towards a final investment decision (FID) this year, with first LNG production anticipated by 2029. Last month, Technip Energies secured the engineering, procurement and construction contract for the development of Commonwealth's Louisiana facility.

Following this deal with EQT, Commonwealth has secured a total of 5mtpa of offtake commitments through long-term, binding deals with international players, including with JERA, Glencore and Petronas.

The agreement with EQT will be fully effective once all customary conditions are met, including a positive FID on the project.