Mon Sep 23 15:14:59 UTC 2024: ## Energy Giants Team Up for LNG Production and Export
**Houston, TX – October 27, 2023** – Kimmeridge Texas Gas (KTG), Commonwealth LNG, and Glencore LTD have entered into a strategic partnership for natural gas and liquefied natural gas (LNG) production and export. The agreement, outlined in a heads of terms agreement, will see Glencore purchase 2 million metric tons per annum (mtpa) of LNG from Commonwealth for 20 years, as well as equivalent natural gas supply from KTG. This agreement accelerates KTG’s aim to become a fully integrated natural gas provider, spanning from wellhead to water.
“This partnership represents a significant step forward for KTG’s platform in delivering reliable, secure, and clean energy,” stated David Lawler, CEO and President of KTG. “Working with Commonwealth and Glencore, we can reach critical international markets and contribute to responsible LNG production and usage.”
Glencore, a leading global diversified natural resource company, will leverage its LNG marketing platform and investment-grade credit rating to facilitate access to international pricing. “We are excited to partner with Kimmeridge Texas Gas and Commonwealth, two leading companies in the natural gas space,” commented Maxim Kolupaev, Glencore’s Global Head of LNG, Gas and Power. “This agreement reflects our shared vision of supporting economies in their energy transition ambitions.”
The definitive agreements are expected to be finalized in the fourth quarter. Commonwealth is anticipating a final investment decision on its LNG export facility in Cameron, Louisiana, in the first half of 2024, with first LNG production expected in 2028.
Kimmeridge Texas Gas, a producer of natural gas committed to carbon neutrality, operates in the Eagle Ford Shale region of Texas. The company produces approximately 400 million cubic feet equivalent of natural gas and oil per day, supplying the South Texas market, LNG terminals, and Gulf Coast petrochemical facilities.
Commonwealth LNG’s 9.5 mtpa LNG export terminal project is strategically located on the Calcasieu River near Cameron, Louisiana.
This partnership represents a significant move in the global energy landscape, combining the expertise of leading companies to facilitate responsible and efficient LNG production and export.
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