According to Reuters, Commonwealth LNG has received pledges from European companies which are prepared to purchase almost half of the 8.4 million tpy capacity of its planned LNG export terminal in Louisiana.
Commonwealth LNG’s project is one of more than 10 export terminal being developed/constructed along the Gulf Coast of the US.
The CEO of Commonwealth LNG, Paul Varello, told Reuters that the company is currently “exchanging documents with counterparties”, which will account for 3 – 4 million t of export capacity. Varello added that he expects a heads of agreement (HoA) to be signed in the near future.
The European buyers all reportedly have their own importing terminals, and Varello has pledged a processing rate of “well below US$2.50 per million Btu for buyers signing 20-year supply contracts.”
A final investment decision (FID) on the project is expected in 3Q/4Q 2020, with the aim to begin LNG shipping operations in 2024.