Gunvor & Commonwealth in strategic LNG marketing & gas supply agreement
Gunvor and Commonwealth LNG have entered into a Strategic LNG Marketing & Gas Supply Agreement in relation to Commonwealth’s LNG export project in Cameron Parish, Louisiana. Under the agreement, Gunvor will support Commonwealth in securing binding LNG offtake and gas supply agreements for the full capacity of the facility. In addition, Gunvor will commit to take up to 3 mtpa of LNG offtake from the facility.
“In this highly competitive market, it is critical for companies – particularly ones pursuing an LNG greenfield project – to recognise their core competencies and strengths,” said Kalpesh Patel, Gunvor Co-Head of LNG Trading.
“Commonwealth LNG’s engineering and procurement team is best in class. And, now, with the comprehensive support of Gunvor’s LNG and U.S. Gas marketing team, Commonwealth LNG will excel not only at controlling costs and project execution, but also at commercialising their project and creating the lowest cost offering on the U.S. Gulf Coast.
“We are very pleased to announce this strategic partnership with Gunvor, the most active LNG trader in the world,” said Paul Varello, Commonwealth’s President and CEO. “We believe Gunvor’s substantial capabilities in LNG marketing and overall market presence, coupled with Commonwealth’s strengths in engineering, construction and project execution create a dynamic combination that ultimately differentiates Commonwealth from every other U.S. LNG project currently chasing FID.”
Commonwealth LNG expects to take a final investment decision in Q1 of 2021 and deliver its first shipments of LNG in Q2 of 2024.
28th November 2019