Commonwealth LNG Signs 20-Year Sale and Purchase Agreement with EQT Corporation
EQT Corporation (NYSE: EQT) has signed a significant 20-year Sale and Purchase Agreement (SPA) with Commonwealth LNG for 1 million tonnes per annum (Mtpa) of LNG from Commonwealth's upcoming 9.5 Mtpa export facility in Cameron Parish, Louisiana.
The agreement involves EQT purchasing LNG on a free-on-board basis at Henry Hub-indexed prices. Commonwealth LNG has now secured 5 Mtpa of offtake under long-term binding agreements with various partners. The company is progressing toward a final investment decision in 2025, with first LNG production targeted for 2029.
EQT Corporation (NYSE: EQT) ha firmato un importante contratto di vendita e acquisto (SPA) della durata di 20 anni con Commonwealth LNG per 1 milione di tonnellate all'anno (Mtpa) di GNL provenienti dal futuro impianto di esportazione da 9,5 Mtpa di Commonwealth nella Cameron Parish, Louisiana.
L'accordo prevede che EQT acquisti il GNL su base franco a bordo (FOB) a prezzi indicizzati all'Henry Hub. Commonwealth LNG ha ora assicurato 5 Mtpa di offtake mediante contratti vincolanti a lungo termine con vari partner. La societ脿 mira a prendere una decisione finale sugli investimenti nel 2025, con la prima produzione di GNL prevista per il 2029.
EQT Corporation (NYSE: EQT) ha firmado un importante Acuerdo de Compra y Venta (SPA) por 20 a帽os con Commonwealth LNG para 1 mill贸n de toneladas por a帽o (Mtpa) de GNL procedente de la pr贸xima planta exportadora de 9,5 Mtpa de Commonwealth en Cameron Parish, Luisiana.
El acuerdo establece que EQT comprar谩 el GNL en base franco a bordo (FOB) a precios indexados al Henry Hub. Commonwealth LNG ha asegurado ahora 5 Mtpa de offtake mediante acuerdos vinculantes a largo plazo con varios socios. La compa帽铆a avanza hacia una decisi贸n final de inversi贸n en 2025, con la primera producci贸n de GNL prevista para 2029.
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鞚措矆 瓿勳暯鞚� EQT臧� 項Μ項堧笇(Henry Hub) 歆�靾橃棎 鞐半彊霅� 臧�瓴╈溂搿� FOB 臁瓣贝鞐愳劀 LNG毳� 甑Г頃橂姅 瓴冹潉 瓿瀽搿� 頃╇媹雼�. Commonwealth LNG電� 順勳灛 鞐煬 韺岉姼雱堨檧鞚� 鞛リ赴 甑啀霠� 鞛堧姅 瓿勳暯鞚� 韱淀暣 齑� 5 Mtpa鞚� 鞓ろ攧韰岇澊韥�毳� 頇曤炒頄堨姷雼堧嫟. 須岇偓電� 2025雲勳棎 斓滌韴瀽瓴办爼鞚� 氇╉憸搿� 頃橁碃 鞛堨溂氅�, 斓滌磮 LNG 靸濎偘鞚� 2029云�鞚� 氇╉憸搿� 頃橁碃 鞛堨姷雼堧嫟.
EQT Corporation (NYSE: EQT) a sign茅 un important accord de vente et d'achat (SPA) d'une dur茅e de 20 ans avec Commonwealth LNG pour 1 million de tonnes par an (Mtpa) de GNL provenant de la future installation d'exportation de 9,5 Mtpa de Commonwealth dans la paroisse de Cameron, en Louisiane.
L'accord pr茅voit qu'EQT ach猫tera le GNL FOB 脿 des prix index茅s sur Henry Hub. Commonwealth LNG a d茅sormais s茅curis茅 5 Mtpa d'offtake via des accords contraignants 脿 long terme avec plusieurs partenaires. La soci茅t茅 vise une d茅cision finale d'investissement en 2025, avec une premi猫re production de GNL pr茅vue pour 2029.
EQT Corporation (NYSE: EQT) hat eine bedeutende 20-j盲hrige Kauf- und Verkaufsvereinbarung (SPA) mit Commonwealth LNG 眉ber 1 Million Tonnen pro Jahr (Mtpa) LNG aus Commonwealths kommender 9,5 Mtpa Exportanlage in Cameron Parish, Louisiana, unterzeichnet.
Die Vereinbarung sieht vor, dass EQT das LNG frei an Bord (FOB) zu Henry-Hub-indexierten Preisen kauft. Commonwealth LNG hat inzwischen 5 Mtpa Offtake durch langfristig bindende Vertr盲ge mit verschiedenen Partnern gesichert. Das Unternehmen strebt eine endg眉ltige Investitionsentscheidung f眉r 2025 an, die erste LNG-Produktion ist f眉r 2029 geplant.
- Secured long-term 20-year LNG supply agreement for 1 Mtpa
- Total of 5 Mtpa of offtake now under binding long-term agreements
- Strategic partnership with one of the largest U.S. natural gas producers
- Project advances U.S. energy leadership and economic growth
- Production not expected to start until 2029
- Final investment decision still pending
- Agreement subject to customary conditions before becoming fully effective
Insights
EQT's 20-year LNG deal with Commonwealth secures significant export capacity, strengthening its position in global markets while diversifying revenue streams.
This 20-year SPA represents a strategic expansion of EQT's market reach beyond domestic natural gas sales into global LNG markets. By securing 1 Mtpa of export capacity (approximately 10.5% of Commonwealth's 9.5 Mtpa facility), EQT gains long-term revenue diversification with international exposure while maintaining pricing linked to familiar Henry Hub indices.
The deal's structure is particularly favorable for EQT as a free-on-board (FOB) arrangement, meaning EQT takes ownership at the loading port but isn't responsible for shipping logistics. This minimizes operational complexity while maximizing margin potential in higher-priced international markets.
For context, this agreement represents Commonwealth's fourth major offtake contract, bringing their committed capacity to 5 Mtpa or roughly 53% of their total capacity. This demonstrates strong commercial momentum for the project ahead of its planned FID in 2025.
The 2029 production timeline aligns with projected growth in global LNG demand, particularly from Asian markets seeking energy security through diversified supply. EQT's decision to lock in capacity now positions them ahead of potential supply constraints as U.S. export terminals face increasing regulatory and construction hurdles.
This agreement strengthens EQT's competitive position among U.S. producers by securing guaranteed export volumes when many peers remain primarily focused on domestic markets. The 20-year term provides significant revenue visibility, potentially improving EQT's risk profile for investors seeking long-term exposure to natural gas with international pricing dynamics.
Under the terms of the agreement, EQT will purchase LNG on a free-on-board basis at a price indexed to Henry Hub. The definitive agreement marks a significant milestone in both companies' efforts to deliver responsibly sourced, low emission natural gas to international markets.
听"The agreement with EQT is a strong endorsement of our integrated natural gas platform, featuring a unique wellhead-to-water strategy that meets burgeoning demand for LNG across global markets, while advancing
"The signing of this agreement with Commonwealth LNG adds to the incredible momentum we are building in the LNG market and further strengthens EQT's position as a leading force in connecting
Commonwealth is advancing toward a final investment decision (FID) in 2025, with first LNG production expected in 2029.听Inclusive of the agreement with EQT, Commonwealth has 5 Mtpa of offtake under long-term, binding agreement (Glencore, JERA and PETRONAS), with line of sight to subscribe its remaining capacity. These foundational contracts demonstrate international confidence in the project's execution and value proposition.
The SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
About Commonwealth LNG
Commonwealth LNG is developing a 9.5 mtpa liquefied natural gas (LNG) export terminal project located near
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About Caturus
Kimmeridge, an alternative asset manager focused on the energy sector, most recently announced the formation of听Caturus. Caturus is building America's leading integrated natural gas and LNG company to deliver responsibly sourced, low-emission fuel to domestic and international markets. The platform comprises Caturus Energy, formerly Kimmeridge Texas Gas, an upstream producer with 600 MMcfe/d across 200,000 acres in
About Kimmeridge
Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an alternative asset manager focused on the energy sector. The firm is differentiated by its direct investment approach, deep technical knowledge, active portfolio management, proprietary research, and data gathering.
Media Inquiries:
Commonwealth LNG
Lyle Hanna
Vice President, Corporate Communications
Email:听 [email protected]
Ph: 281.794.9606
Caturus/Kimmeridge
Daniel Yunger / Hallie Wolff / Emma Cloyd
Email: [email protected]
Ph: 917.574.8582 / 917.842.1127
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FAQ
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