Under the terms of the agreement, Gunvor claims it will support Commonwealth in securing binding LNG offtake and gas supply agreements for the full capacity of the facility. In addition to this, Gunvor will commit to take up to 3 million tpy of LNG offtake from the facility.
Kalpesh Patel, Gunvor Co-Head of LNG Trading, said: “In this highly competitive market, it is critical for companies – particularly ones pursuing an LNG greenfield project – to recognise their core competencies and strengths.
“Commonwealth LNG’s engineering and procurement team is best in class. And, now, with the comprehensive support of Gunvor’s LNG and US 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 US Gulf Coast.”
Paul Varello, Commonwealth’s President and CEO, added: “We are very pleased to announce this strategic partnership with Gunvor, the most active LNG trader in the world.
“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 US LNG project currently chasing FID.”
According to the statement, Commonwealth LNG is expecting to take a final investment decision in 1Q21 and deliver its first shipments of LNG in 2Q24.
Read the article online at: https://www.lngindustry.com/liquefaction/26112019/gunvor-enters-lng-agreement-with-commonwealth-lng/