Gunvor signs agreement with Commonwealth LNG export project
Gunvor Group has signed an LNG marketing and gas supply agreement with Commonwealth LNG pertaining to the latter’s $4 billion Commonwealth LNG export project in Cameron Parish, Louisiana.
As per the agreement, the Swiss commodities trading house will help the LNG developor in getting binding LNG offtake and gas supply agreements for the full capacity of the Commonwealth LNG export project. Apart from that, Gunvor will commit to buy up to three million tonnes per annum (MTPA) of LNG offtake from the new LNG export terminal to be developed on the Calcasieu River with a capacity of 8.4 MTPA.
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 recognize 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 commercializing their project and creating the lowest cost offering on the US Gulf Coast.”
Gunvor signs agreement with Commonwealth LNG export project. Image courtesy of Stuart Miles/Freedigitalphotos.net.
Commonwealth LNG is likely to make a final investment decision on the Commonwealth LNG export project in the first quarter of 2021 with a goal to make the first LNG shipments in the second quarter of 2024.
Paul Varello – Commonwealth LNG President and CEO said: “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.”
The Commonwealth LNG export project will house six 40,000 M3 modular storage tanks and will be able to host vessels up to 216,000 M3.