Commonwealth LNG has closed an investment of development capital from private funds managed by Kimmeridge Energy Management Company, LLC, an alternative asset management firm focused on the energy sector. This investment completes the development funding required for Commonwealth LNG to reach final investment decision (FID) on its 9.3 million tpy LNG export facility in Cameron, Louisiana, the US.
Commonwealth LNG and Kimmeridge have also agreed in principle on terms for a 20-year, 2 million tpy LNG offtake commitment from the facility along with the associated gas supply. The agreement also includes key terms for Kimmeridge’s participation to provide further equity in Commonwealth LNG to support construction of the facility.
“We are delighted to partner with Kimmeridge, a company that is committed to the transition toward a lower carbon future,” said Paul Varello, Executive Chairman and Founder of Commonwealth LNG. “This agreement signifies another major milestone in the project’s development and an alignment with a strategic partner who shares our vision about the future of global energy security.”
Ben Dell, Managing Partner of Kimmeridge, said, “Our transaction with Commonwealth LNG gives Kimmeridge the opportunity to be vertically integrated from wellhead to water, enabling us to provide reliable, secure, and clean energy to global markets. We have been impressed with the strong management team Commonwealth LNG has assembled and their commitment to successfully sanction and construct the project.”
Commonwealth LNG President and CEO, Farhad Ahrabi, added: “This deal brings an additional 2 million tpy of offtake to the project from a customer who is willing and able to stand behind their commitment. The recent LNG marketing progress, the completion of FEED, and the conclusion of the EPC contract with Technip Energies ensures Commonwealth commences delivering LNG to our customers in early 2027. Commonwealth LNG brings a differentiated offering to the LNG market through our modular design that lowers cost, speeds time-to-market, and avoids contractor concentration risk.”
Moelis acted as exclusive placement agent to Commonwealth LNG on the transaction.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/16082023/commonwealth-lng-closes-on-investment-and-agrees-to-terms-for-strategic-partnership/
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