Commonwealth Projects and Gunvor Group, through respective units, have signed a heads of agreement (HOA) for a 15-year LNG sale and purchase deal from the Commonwealth LNG export project under development in Cameron Parish, Louisiana.
The HOA anticipates the negotiation and finalization of a deal for 1.5 million tonnes per annum (Mtpa) of LNG offtake from the project, Commonwealth said in its statement on Wednesday.
Kalpesh Patel, Gunvor Co-Head of LNG Trading said, “The agreement with Commonwealth LNG is a significant step in executing Gunvor’s overall strategy of uncovering and securing low-cost resources and seamlessly delivering them to high-value markets.”
Paul Varello, Commonwealth’s president and CEO noted the deal with Gunvor covers a portion of the production capacity at the facility for which it expects to take a final investment decision later next year.
The project would have a production capacity of 8.4 million tons per annum of liquefied natural gas.
Commonwealth LNG expects to start operations at the plant in the first quarter of 2024.