Commonwealth LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

Commonwealth LNG Terminal is a proposed LNG terminal in Cameron Parish, Louisiana, United States.


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Project Details

  • Owner: Commonwealth LNG, LLC
  • Parent: Commonwealth LNG, LLC
  • Location: Cameron Parish, Louisiana, United States
  • Coordinates: 29.764163, -93.348066 (approximate)
  • Capacity: 8.4 million tonnes per year (mtpa)[1]
  • Cost: US$4.8 billion[2]
  • Financing: Sumitomo Mitsui Banking Corporation is the project's Financial Advisor[3]
  • Status: Proposed, pre-FID
  • Type: Export
  • Trains: 6
  • Start Year: 2024[4]

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


Commonwealth LNG Terminal is a proposed LNG terminal in Louisiana, United States.[5] It will have six production trains,[6] and a total capacity of 8.4 million tonnes per year.[7] Project costs are estimated to be US$4.8 billion.[2]

The Office of Fossil Energy granted Commonwealth LNG long-term authorization to export LNG to Free Trade Agreement (FTA) countries in December of 2012.[8] 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.[9] In January 2018, Sumitomo Mitsui Banking Corporation was appointed as the project's financial advisor by Commonwealth LNG.[3]

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 it was 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 (FID) 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.[13]

In April 2020, the energy and shipping brokerage Poten & Partners disclosed that the 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. [14]

Commonwealth tendered the project for terminal supplies in January 2021 and expects to select bidders by the end of June 2021.[15]

As of June 2021, the results of the tendering process had not been announced. Construction of the terminal is still targeted to begin in the first quarter of 2022, though a further regulatory issue is believed to be causing delays. A filing by the National Marine Fisheries Service (NMFS) to FERC pointed out that an assessment which addresses the project's potential impacts to essential fish habitat is incomplete. NMFS also said that the project's main permitting review has been paused for more than a year due to the delay in the availability of a draft Environmental Impact Statement (EIS) – federal agencies' authorizations are dependent on an EIS.[16] In Aug. 2021 Commonwealth LNG asked FERC to reject calls to invalidate the plant's license on the grounds that no new evidence had been introduced since the license was granted in 2019.[17]

In October 2021, the CEO of Commonwealth LNG, Paul Varello, said that FID for the terminal was projected for early 2023 owing to delays with the project receiving a permit certificate from FERC. The permitting from FERC was now anticipated by late 2022. Varello said that in August 2021 the company signed a preliminary agreement with Bangladesh's Summit Oil & Shipping to potentially contract for up to 1 million tonnes per annum of LNG from its proposed facility, though that offtake deal had still to be finalized. Varello also spoke of having made "substantial progress" on other contract agreements which were in the final stages of negotiation. These contracts represent more than half of Commonwealth's 7 million to 7.5 million tonnes per annum capacity target which it needs to secure before being able to sanction the project by taking FID.[18]

In January 2022, Australian firm Woodside Energy signed a Heads of Agreement with Commonwealth LNG to negotiate a sale and purchase agreement for the supply of 2 Mtpa of LNG over a period of 20 years, scheduled to begin in the second quarter of 2026.[19]

In September 2022, Woodside Energy and Commonwealth LNG solidified the commitments under the heads of agreement by agreeing to two sales and purchase agreements for up to 2.5 mtpa LNG over 20 years.[20]


In a public letter filed with 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.[21]

Articles and resources


  1. Commonwealth LNG and Gunvor Singapore Pte Ltd Sign Heads of Agreement Yahoo Finance, June 12, 2019
  2. 2.0 2.1 Paul Corey, "Commonwealth LNG touts modular approach, second-mover advantage", S&P Global, Oct. 29, 2019
  3. 3.0 3.1 "Commonwealth LNG selects SBMC as financial advisor", Offshore Energy, Jan. 4, 2018
  4. Sergio Chapa, Commonwealth LNG lands supply deal for one-third of proposed production Chron, November 25, 2019
  5. North American LNG Export Terminals: Proposed Federal Energy Regulatory Commission, 1 May 2017
  6. TechnipFMC selected for Commonwealth LNG project World Oil, October 16, 2018
  7. Commonwealth LNG and Gunvor Singapore Pte Ltd Sign Heads of Agreement Yahoo Finance, June 12, 2019
  8. 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
  9. Three US-based LNG terminal projects report delays to operational start dates Platts, 7 April 2017
  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. 13.0 13.1 Sergio Chapa, Commonwealth LNG lands supply deal for one-third of proposed production Chron, November 25, 2019
  14. John Snyder, FID's delayed by global uncertainty, Riviera Maritime Media, Apr. 24, 2020
  15. LNG Project Tracker: Commercial talks pick up as field of developers shrinks, SP Global Platts, Apr. 5, 2021
  16. Harry Weber, Commonwealth LNG faces regulatory, commercial questions ahead of construction, S&P Global, Jun. 29, 2021
  17. Commonwealth fights back against LNG protesters, Industry Report, Aug. 24, 2021
  18. Harry Weber, Commonwealth LNG in late-stage talks with customers for US project: CEO, S&P Global, Oct. 7, 2021
  19. Woodside and Commonwealth LNG sign HOA for LNG supply, Woodside Energy media release, Jan. 19, 2021
  20. LNG Prime Staff (2022-09-05). "Woodside, Commonwealth LNG finalize US supply deal". LNG Prime. Retrieved 2022-09-06.
  21. Sergio Chapa, Audubon: Commonwealth LNG could destroy habitat of rare, elusive marsh bird Chron, December 3, 2019

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