Commonwealth LNG Books Equipment Order, Secures Funding
Louisiana-based Commonwealth LNG project takes two steps forward with Baker Hughes order and Kimmeridge investment.
Commonwealth LNG announced a strategic agreement with Baker Hughes on 21 August for its liquefied natural gas (LNG) facility in Cameron Parish, Louisiana.
The energy technology company will work with Commonwealth LNG to maximize output and reduce emissions using its LM9000 aeroderivative gas turbine technology. Baker Hughes describes the turbine as the most powerful and efficient in its class, 65+ MW, with simple cycle efficiency of 44% and a power output 15% higher compared to industry peers.
Commonwealth said the partnership would encompass a range of other Baker Hughes equipment, services, and software to support the project, including compressor technology, spare parts, maintenance services, and the Cordant Asset Performance Management suite.
The equipment order is expected to be granted in conjunction with the financial close of the Commonwealth LNG project, which is expected in the first quarter of 2024, according to the company.
The agreement comes a week after Commonwealth said it had closed an investment of development capital from private funds managed by Kimmeridge Energy Management Company.
“The investment completes the development funding required for Commonwealth LNG to reach a final investment decision (FID) on its 9.3 mtpa LNG export facility in Cameron, Louisiana,” the LNG company said.
The two companies also agreed on terms for a 20-year, 2 mtpa LNG offtake commitment from the Commonwealth LNG export facility along with the associated gas supply. The agreement also includes key terms for Kimmeridge’s participation to provide further equity in Commonwealth LNG to support the facility's construction.
“We are delighted to partner with Kimmeridge, a company committed to the transition toward a lower-carbon future,” said Paul Varello, executive chairman and founder of Commonwealth LNG. “This agreement signifies another major milestone in the project’s development and an alignment with a strategic partner who shares our vision about the future of global energy security.”
LNG deliveries from the Commonwealth LNG export facility are expected to begin in early 2027.