Commonwealth LNG Enters Long-Term LNG Sale, Purchase Agreement with Unnamed Asian Buyer

Commonwealth LNG signed an LNG sales and purchase agreement (SPA) with a major Asian energy buyer for 1 MTPA of LNG over 20 years. The buyer’s LNG will come from Commonwealth’s 9.5 MTPA LNG liquefaction and export facility in Cameron, LA, with additional development underway. LNG deliveries will begin upon the closing of customary conditions and the project’s positive final investment decision.

“We look forward to building and strengthening our partnership with this buyer in mutually beneficial ways as we progress on our journey,” said Farhad Ahrabi, President and CEO of Commonwealth, a subsidiary of Kimmeridge SoTex. “We’re committed to building and creating a safe, reliable, efficient, and well-governed LNG operating company.”

The project’s first development phase includes an investment exceeding $11 billion and a projected $3.5 billion in yearly export revenue, strengthening Louisiana’s overall economy. At peak construction, it may employ up to 2,000 workers, with approximately 275 well-paying positions upon commercial operation in late 2029.

LNG export facility in Cameron, LA; image credit: TotalEnergies

“This offtake agreement marks another important milestone for Commonwealth as we work toward a final investment later this year and first offtake planned for 2029,” said Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth. “We look forward to working with this buyer as we further our integrated wellhead-to-water strategy in delivering LNG to critical markets around the world.”

Previously, in late 2023, Commonwealth LNG signed a memorandum of understanding with OnStream CO₂—a joint venture between Carbonvert and Castex Carbon Solutions—for the installation and operation of a carbon capture and storage solution at its Cameron, LA, LNG facility. OnStream CO₂ agreed to design, construct, own, and operate CO₂ capture equipment in the vicinity of the Commonwealth LNG facility. Commonwealth LNG has dedicated CO₂ emitted from its LNG facility for a 20-year term.

OnStream CO₂ also signed an operating agreement with the State of Louisiana to develop a 24,000-acre plot offshore from Cameron Parish, where captured CO₂ will be permanently stored in a hub with a capacity of more than 250 million metric tons, dubbed the Cameron Parish CO₂ Hub. Castex is responsible for the operation of the Cameron Parish CO₂ Hub.

DOE Pause

The Department of Energy’s recent LNG export pause impacted Commonwealth before it was revoked. Commonwealth LNG was stalled and costed the project millions due to inflation while it sat still. In late June, Kimmeridge Texas Gas closed a follow-on control investment in Commonwealth LNG, raising its equity ownership to 90%. After selling his control to Kimmeridge, Founder and Executive Chairman of Commonwealth LNG, Paul Varello, announced his retirement. The pause also impacted Venture Global’s Calcasieu Pass 2 (CP2) LNG in Louisiana; however, on June 27, FERC issued a certificate that allowed CP2 to move forward.

Kimmeridge + Mubadala Energy

In April 2025, Mubadala Energy agreed to acquire a 24.1% interest in Kimmeridge’s SoTex HoldCo (SoTex), entering the U.S. upstream LNG market, fulfilling its international expansion plans, and aligning with the UAE’s 2050 net-zero initiative. SoTex holds Kimmeridge Texas Gas and Commonwealth LNG, allowing Mubadala Energy to play an active role in two major gas-based energy hubs.