HomeNewsGlencore signs offtake deal with KTG and Commonwealth LNG

Glencore signs offtake deal with KTG and Commonwealth LNG

9/20/2024

Kimmeridge Texas Gas (KTG) and Commonwealth LNG have entered into a Heads of Terms agreement with Glencore LTD, 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."

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