Agreement accelerates KTG’s objective of becoming fully integrated provider of natural gas from wellhead to water
Kimmeridge’s recent control investment in Commonwealth to support 9.5 mtpa LNG export facility in Louisiana through FID in 1H 2025
HOUSTON and NEW YORK, Sept. 19, 2024 /PRNewswire/ — Kimmeridge Texas Gas (“KTG”) and Commonwealth LNG (“Commonwealth”) have entered into a Heads of Terms agreement with Glencore LTD (“Glencore”), one of the world’s largest globally diversified natural resource companies, forming a strategic natural gas and LNG partnership. Under the terms of the agreement, Glencore will purchase 2 million tonnes per annum of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from KTG under a netback agreement at international prices.
The definitive agreements are expected to be finalized among the parties in Q4 2024. Commonwealth anticipates a final investment decision on its LNG export facility in Cameron, Louisiana in 1H 2025, with the first LNG production expected in 2028.
David Lawler, KTG CEO and President, said: “Our partnership with Glencore represents another tangible step forward for the KTG platform in becoming a fully integrated provider of reliable, secure and clean energy from wellhead to water. With Commonwealth by our side, we look forward to reaching critical international markets in partnership with Glencore, who shares our vision of responsible LNG production and usage.”
Maxim Kolupaev, Glencore Global Head of LNG, Gas and Power, commented: “We are excited to partner with Kimmeridge Texas Gas and Commonwealth, two leading companies in the natural gas space, under a novel framework that leverages Glencore’s premier LNG marketing platform and investment grade credit rating to facilitate access to international pricing. This agreement is the result of a strong relationship between Glencore and Kimmeridge, building upon our common vision of helping economies accelerate their energy transition ambitions.”
About Kimmeridge Texas Gas
Kimmeridge Texas Gas is a producer of natural gas committed to accelerating carbon neutrality by developing environmentally responsible, low-cost energy assets. With approximately 148,000 net acres in Texas overlaying the dry gas window of the Eagle Ford Shale within Webb, La Salle, McMullen and Karnes counties, the Company produces approximately 400 million cubic feet equivalent of natural gas and oil per day, selling into the South Texas market with access to Mexican export channels, to LNG terminals for global sales, and into pipelines directly servicing Gulf Coast petrochemical facilities.
About Commonwealth LNG
Commonwealth LNG is a 9.5 mtpa liquefied natural gas (LNG) export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana. The project’s leadership team is committed to building a world-class LNG facility by staying relentlessly focused on managing risk and lowering capital cost.
About Glencore LTD
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly sourced commodities that advance everyday life. The Group’s operations comprise around 150 mining and metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore’s industrial activities are supported by a global network of more than 30 marketing offices. Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. Glencore also provides financing, logistics and other services to producers and consumers of commodities. Glencore’s companies employ around 135,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. Glencore is an active participant in the Extractive Industries Transparency Initiative. Our ambition is to be a net zero total emissions company by 2050.
Media Inquiries:
KimmeridgeDaniel Yunger / Hallie Wolff / Emma Cloyd
917-574-8582 / 917-842-1127
Commonwealth LNG
Lyle Hanna
Vice President, Corporate Communications Office: 346-352-4436Direct: 281-794-9606
Email: [email protected]
SOURCE Kimmeridge