The US Federal Energy Regulatory Commission (FERC) has upheld the final order authorising Commonwealth LNG's 9.5 million tonnes per annum (mtpa) export project.
This significant milestone paves the way for the company to reach a final investment decision (FID) in the third quarter (Q3) of this year, with first liquefied natural gas (LNG) production anticipated in 2029.
Located on the Calcasieu Ship Channel near Cameron, Louisiana, the project is expected to generate substantial economic benefits including an $11bn investment in the state and an estimated $3.5bn in annual export revenue.
The project has gained considerable traction with the announcement of long-term binding LNG offtake agreements with global purchasers such as Glencore, JERA and Petronas.
Commonwealth Kimmeridge managing partner and chairman Ben Dell added: "We are pleased to have received this Final Order from FERC and we thank the regulatory body for their diligent and thorough analysis. This milestone further paves the way for development of a state-of-the-art LNG export facility that strengthens energy security domestically and for our allies, all while prioritising environmental stewardship and providing sustained economic benefit for local communities."
These partnerships are integral to Commonwealth's strategy to finalise its commercial book shortly.
Commonwealth is implementing an innovative wellhead-to-water strategy through its upstream operating entity.
This approach is designed to offer competitive pricing and lower emissions, aligning with the global market's demand for reliable supply sources.
The construction and operation of the Commonwealth LNG facility are set to create significant employment opportunities, with around 2,000 workers expected at the peak of construction and 270 high-paying jobs upon commencement of operations.
Additionally, the project will contribute to community development through improvements in healthcare, education and infrastructure.
Commonwealth president and CEO Farhad Ahrabi said: "Receiving the FERC Final Order is a tribute to the persistence and outstanding execution of our team. We likewise greatly appreciate the community support we received in Cameron and the surrounding area. We look forward to realising the benefits that this facility will bring for all who have contributed to making it happen."
