Commonwealth LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Commonwealth LNG Terminal is a proposed LNG terminal in Cameron Parish, Louisiana, United States.

Location

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Project Details

  • Owner: Commonwealth LNG, LLC
  • Location: Cameron Parish, Louisiana, United States
  • Coordinates: 29.85, -93.2 (approximate)
  • Capacity: 8.4 million tonnes per year (mtpa)[1]
  • Status: Proposed
  • Type: Export
  • Trains: 6
  • Start Year: 2024[2]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Commonwealth LNG Terminal is a proposed LNG terminal in Louisiana, United States.[3] It will have six production trains,[4] and a total capacity of 8.4 million tonnes per year.[5] Project costs are estimated to be US$4.8 billion.[6]

The Office of Fossil Energy granted Commonwealth LNG long-term authorization to export LNG to Free Trade Agreement (FTA) countries in December of 2012.[7] Commonwealth LNG announced in April 2017 an expected commercial operation start date by the second quarter of 2022, representing a delay from the previously-expected operation date of fourth quarter 2021.[8] In January 2018, Sumitomo Mitsui Banking Corporation was appointed as the project's financial advisor by Commonwealth LNG.[9]

In June of 2019, Commonwealth Projects and Gunvor Group Ltd signed a heads of agreement (HOA), which finalized a definitive 15-year liquefied natural gas (LNG) sale-and-purchase agreement (SPA) for 1.5 million tonnes per annum of LNG offtake from the Commonwealth LNG terminal.[10]

In September of 2019, the Federal Energy Regulatory Commission (FERC) formally accepted Commonwealth LNG’s filing application.[11] However, in March 2020 FERC announced that they were suspending the environmental review for Commonwealth LNG due to delays in receiving key data from Commonwealth LNG.[12] FERC is not expected to make a permit decision until the first quarter of 2021. The company expects to make a final investment decision shortly after, and deliver its first shipments of LNG in the second quarter of 2024.[13]

In November of 2019, Commonwealth LNG, LLC announced a deal with Gunvor, in which Gunvor will take 3 million metric tons of production from the plant and help Commonwealth LNG land contracts to sell the rest of the facility's production on the global market.[14]

In April 2020, the energy and shipping brokerage Poten & Partners disclosed that the final investment decision (FID) for the terminal had been delayed beyond the original FID timing of the second quarter of 2021. It cited COVID-19, plunging demand and the crash in oil prices as the reasons for the delay. [15]

Opposition

In a public letter filed with the Federal Energy Regulatory Commission (FERC) in December of 2019, the Audubon Society of Louisiana wrote that the terminal could destroy habitat for the eastern black rail, a rare marsh bird that is expected to be added to the endangered species list in 2020.[16]

Articles and resources

References

  1. Commonwealth LNG and Gunvor Singapore Pte Ltd Sign Heads of Agreement Yahoo Finance, June 12, 2019
  2. Sergio Chapa, Commonwealth LNG lands supply deal for one-third of proposed production Chron, November 25, 2019
  3. North American LNG Export Terminals: Proposed Federal Energy Regulatory Commission, 1 May 2017
  4. TechnipFMC selected for Commonwealth LNG project World Oil, October 16, 2018
  5. Commonwealth LNG and Gunvor Singapore Pte Ltd Sign Heads of Agreement Yahoo Finance, June 12, 2019
  6. Commonwealth LNG touts modular approach, second-mover advantage S&P Global, Oct. 29, 2019
  7. Commonwealth LNG, LLC (formerly Waller LNG Services, d/b/a Waller Point LNG) - FE dkt. No 12-152-LNG,Department of Fossil Energy, accessed 21 May 2017
  8. Three US-based LNG terminal projects report delays to operational start dates Platts, 7 April 2017
  9. Commonwealth LNG selects SBMC as financial advisor Offshore Energy, Jan. 4, 2018
  10. Commonwealth LNG and Gunvor Singapore Pte Ltd Sign Heads of Agreement Yahoo Finance, June 12, 2019
  11. FERC Accepts Commonwealth LNG’s Permit Application Business Wire, September 3, 2019
  12. David Rowlands, FERC suspends environmental review for Commonwealth LNG LNG Industry, March 18, 2020
  13. Sergio Chapa, Commonwealth LNG lands supply deal for one-third of proposed production Chron, November 25, 2019
  14. Sergio Chapa, Commonwealth LNG lands supply deal for one-third of proposed production Chron, November 25, 2019
  15. John Snyder FID’s delayed by global uncertainty Riviera Maritime Media, Apr. 24, 2020
  16. Sergio Chapa, Audubon: Commonwealth LNG could destroy habitat of rare, elusive marsh bird Chron, December 3, 2019

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External resources

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