Commonwealth LNG is a natural gas liquefaction export terminal currently under development in Louisiana, US, by Commonwealth LNG, a company specialising in the production of liquefied natural gas (LNG).
The pre-filing process for the project commenced in July 2017 with the application to build, construct and operate the facility submitted to the Federal Energy Regulatory Commission (FERC) in August 2019. Subsequent amendments were made to the application in July 2021. The FERC granted approval to proceed with the project in November 2022.
The final investment decision for the project is anticipated in the first quarter of 2024. The terminal is expected to have an export capacity of 9.3 million tonnes per annum (Mtpa) of LNG.
Construction activities at the project site are scheduled to begin in the first half of 2024, with commercial operations scheduled to start in 2027.
The Commonwealth LNG terminal will be developed in south-central Cameron Parish, Louisiana, on the west bank of the Calcasieu ship channel in the Gulf of Mexico. The terminal’s infrastructure will encompass an area of 118.8 acres.
Commonwealth LNG project details
The project involves the construction of a 9.3Mtpa LNG export terminal, complete with a new natural gas pipeline connecting the terminal to two existing pipelines.
The development will feature six liquefaction trains each with a capacity of 1.4Mtpa, six gas pre-treatment trains, two flare systems, and six modular LNG storage tanks each holding 50,000m³. A berth capable of accommodating a single-vessel LNG carrier will also be constructed. The facility will be equipped to handle LNG carriers ranging in size from 10,000m³ to 216,000m³.
A barge dock and an off-loading platform are also planned to facilitate the receipt of heavy loads necessary for construction activities and supplies. The two flare systems will serve the liquefaction and the marine facilities respectively. Additional infrastructure will include an access road, storm protection and a stormwater drainage system.
To meet the power demands of the project, a 120MW natural gas-fired simple cycle power plant will be constructed on-site. Backup power will be generated by two diesel generators with a battery backup system.
The new pipeline infrastructure will consist of a three-mile (4.8km) pipeline with a diameter of 42in, alongside associated facilities. It will include two interconnection facilities at three existing natural gas pipelines: the dual 20-inch and 12-inch diameter Bridgeline pipelines and the 16-inch diameter Kinetica pipeline.
The new pipeline is designed to supply approximately 1.44 billion cubic feet per day (bcf/d) of natural gas to the terminal.
A metering station will be installed at the terminal, featuring a gas separator, a liquid storage and loadout facility, custody transfer meters, pressure regulators, emergency shutdown valves, gas analysers and a pig receiver.
In September 2023, Commonwealth LNG signed a heads of agreement (HOA) with EQT, the largest natural gas producer in the US, for the supply of 1Mtpa of LNG to the project under a 15-year tolling agreement.
LNG sales and purchase agreements
Commonwealth agreed in principle to supply 2Mtpa of LNG and associated gas from the facility to Kimmeridge Energy, an asset management firm.
In September 2023, MET Group, an energy company, signed an HOA for the sale and purchase of 1Mtpa of LNG for 20 years from the project.
Commonwealth LNG and Woodside Energy Trading (Singapore), a subsidiary of Woodside Energy Group, converted their HOA, announced in January 2022, into two binding LNG sales and purchase agreements in September 2022. According to these agreements, Commonwealth will supply up to 2.5Mtpa of LNG to Woodside for more than 20 years.
Summit Oil and Shipping, the largest private sector importer and supplier of fuel oil to Bangladesh, signed a memorandum of understanding with Commonwealth LNG in August 2021. The collaboration aims to facilitate the supply of LNG to Asia, including a 1Mtpa LNG offtake for a period of up to 20 years.
Gunvor (Singapore), a subsidiary of Gunvor Group, signed an HOA with Commonwealth LNG for the supply of 1.5Mtpa of LNG from the project for a 15-year term.
Baker Hughes entered an agreement with Commonwealth LNG in August 2023 to enhance production from the project.
Baker Hughes will provide its LM9000 aero-derivative gas turbine technology, along with key equipment, services, and software, including its proven compressor technology, spare parts, maintenance services and the Cordant Asset Performance Management suite.
TechnipFMC, an oil and gas technology company, was awarded an engineering service contract for the project in October 2018.
Lloyd Engineering has been contracted to provide design services for the marine facility and turning basin, as well as support for the project’s water suitability assessment.