US integrated gas and LNG company Caturus, controlled by energy-focused alternative investment manager Kimmeridge, has revealed the final investment decision (FID) for an LNG export project under development in Louisiana, US.
Caturus has made a final positive investment decision of $13 billion Commonwealth LNG The project, which includes closing $9.75 billion in project financing to build a 9.5 million tons per year liquefied natural gas export facility in Cameron Parish, Louisiana.
Ben DaleKimmeridge Managing Partner and Head of Commonwealth LNG commented: “This historic occasion, in parallel with the continued growth of Caturus’ upstream platform, is the culmination of years of strategic planning, strong partnerships and a commitment to delivering a fully integrated ‘wellhead to water’ project.”
The FID is said to mark the start of full construction, consolidating what is considered one of the most efficient and cost-competitive LNG projects in the US, according to the developer, confirming that the deal has received strong interest from both equity and debt investors, resulting in total commitments of $21.25 billion.
The company confirms that long-term offtake agreements have been entered into with a variety of global energy and industrial counterparties, including… IQT, Glencore, Mercuria, Petronasand Aramco Trading. The first phase development is expected to generate more than $3 billion in annual export revenue when operations begin in 2030.
Mubadala Energy, which already owns a 24.1% stake in the Catorus platform, which includes Commonwealth LNG and exploration and production operations, is also a contributor to the project’s financing.
Mansour Mohammed Al-HamidThe Managing Director and CEO of Mubadala Energy Company confirmed: “This FID announcement is a major milestone for Commonwealth LNG and is a critical step in realizing its strategy for a fully integrated ‘wellhead to water’ operation.”
“For Mubadala Energy, we are pleased to play an active role in helping realize this vision while building further momentum for our international growth strategy. This investment adds to our existing global gas-weighted portfolio and expands our exposure across the full gas value chain – an important driver of our long-term growth plans.”
The Canada Pension Plan Investment Board (CPP Investments) will contribute $1.2 billion in financing to increase its total stake in the Caturus platform to 31%, including previous investments. In addition, key financial partners in the project include EOC Partners, funds and accounts managed by BlackRock, and the Ares Infrastructure Opportunities Fund.
Bill RogersThe General Manager and Head of Sustainable Energy at CPP Investments confirmed: “Catorus is distinguished by its integrated approach to natural gas production and LNG export, and the platform is well positioned to support energy reliability and resilience in its core markets over time.
“This increased investment in Caturus alongside our partners represents a compelling opportunity to expand our commitment to a differentiated energy platform in an effort to deliver long-term value to the CPP Fund.”
cat previously authorized France Technip energiesthe Engineering, Procurement and Construction (EPC) partner of Commonwealth LNG, to order key long-term equipment for the facility. The partnership will benefit from the European company’s global LNG experience and modular approach to improve safety and efficiency across the site.
The facility will include six Baker Hughes Mixed refrigeration compressors Powered by LM9000 gas turbines, six Honeywell Main cryogenic heat exchangersand four Titan 350 gas turbine generators Solar turbines. The Commonwealth LNG project will also be able to load LNG carriers with a capacity of up to 216,000 cubic metres.
David LawlerCaturus CEO noted: “Global gas demand is undoubtedly accelerating, and Caturus is positioned to be a distinct leader across the value chain from upstream production to LNG export. In partnership with our best-in-class team, major investors and Kimmeridge, Caturus will continue to embody the value of being the nation’s leading independent, integrated natural gas company.”
The Commonwealth LNG facility is a key component of Caturus’ integrated natural gas strategy to meet an expanding global energy market seeking reliable, on-demand energy with a low carbon footprint for direct oversight and accountability for natural gas exploration and production, as well as liquefaction capabilities to market LNG for export.
The company recently expanded its exploration and acquisition holdings through the acquisition of the Galvan Ranch natural gas assets from SM Energy; Thus, the company now produces more than 1 billion cubic feet equivalent per day on a net basis.
The American player claims to be ranked first among the ten largest natural gas producers in the United States. The Commonwealth LNG project is described as representing $100 billion of capital invested in Louisiana during Louisiana’s tenure. Jeff LandryPeriod of state leadership.
Dale stated: “We would like to thank the Trump Administration, Secretary Wright and the Department of Energy, Governor Jeff Landry and the State of Louisiana, Speaker of the U.S. House of Representatives Mike Johnson and all those who recognize how influential the Commonwealth will be in strengthening America’s energy leadership into the future while generating tremendous value for Louisiana’s local communities.”
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