Commonwealth LNG and MET Group Announce Signing of a 20-Year Agreement

Commonwealth LNG has entered into a Heads of Agreement (HOA) with MET Group, a Switzerland-based energy services provider, for the sale and purchase of one million tonnes per annum (Mtpa) of liquefied natural gas (LNG) for a period of 20 years from the Commonwealth LNG facility under development in Cameron, Louisiana, USA.

“The agreement recognizes the potential of U.S. liquefied natural gas in the European energy transition, long-term, by providing reliable and affordable natural gas to the region. We are excited to work with MET Group to deliver long-term LNG, contributing to the natural gas supply security of our customers,” said Paul Varello, Founder and CEO of Commonwealth LNG.

MET Group has increased its presence in the LNG market, importing over 30TWh of LNG to countries such as Croatia, Greece, Spain, Belgium, and the United Kingdom in 2022 alone. Additionally, this year, the company secured long-term LNG capacities in Germany and expanded its spot capacities in Finland.

“The supply of LNG to Europe can significantly contribute to diversifying natural gas supplies and energy security. LNG is also an important part of MET Group’s future strategy,” said Benjamin Lakatos, President and CEO of MET Group.

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The terms outlined in the non-binding sale and purchase agreement will apply from the start of commercial operations of the facility in 2027. The final terms are subject to negotiation of a definitive sale and purchase agreement between the parties.

Commonwealth is focused on taking the final investment decision steps for the project in the first quarter of 2024, with initial cargo deliveries expected in 2027. An accelerated construction program will allow the project to be completed in just three years, using a modular approach with key components manufactured offsite.

The Commonwealth LNG project is already permitted and includes six natural gas liquefaction trains and associated facilities capable of producing approximately 9.3 Mtpa of LNG.