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Commonwealth LNG closes on investment and agrees to terms for strategic partnership

Commonwealth LNG closes on investment and agrees to terms for strategic partnership (prnewswire.com)

HOUSTON, Aug. 14, 2023 /PRNewswire/ — Commonwealth LNG announced today that it has closed an investment of development capital from private funds managed by Kimmeridge Energy Management Company, LLC (Kimmeridge), an alternative asset management firm focused on the energy sector. This investment completes the development funding required for Commonwealth LNG to reach final investment decision (FID) on its 9.3 million tons per annum (mtpa) LNG export facility in Cameron, Louisiana. 

Commonwealth LNG and Kimmeridge have also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the 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 construction of the facility. 

“We are delighted to partner with Kimmeridge, a company that is 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.”

Ben Dell, Managing Partner of Kimmeridge, said, “Our transaction with Commonwealth LNG gives Kimmeridge the opportunity to be vertically integrated from wellhead to water, enabling us to provide reliable, secure, and clean energy to global markets.” He added, “We have been impressed with the strong management team Commonwealth LNG has assembled and their commitment to successfully sanction and construct the project.”

Commonwealth LNG President and CEO Farhad Ahrabi said, “This deal brings an additional 2 mtpa of offtake to the project from a customer who is willing and able to stand behind their commitment. The recent LNG marketing progress, the completion of FEED, and the conclusion of the EPC contract with Technip Energies ensures Commonwealth commences delivering LNG to our customers in early 2027.” 

“Commonwealth LNG brings a differentiated offering to the LNG market through our modular design that lowers cost, speeds time-to-market, and avoids contractor concentration risk,” Ahrabi added.

Moelis acted as exclusive placement agent to Commonwealth LNG on the transaction.

About Commonwealth LNG

Commonwealth LNG is a 9.3 mtpa liquefied natural gas (LNG) export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana. The project’s leadership team is committed to building a world-class LNG facility by staying relentlessly focused on managing risk and lowering capital cost.

Website: www.CommonwealthLNG.com      LinkedIn: https://www.linkedin.com/company/commonwealth-lng/

About Kimmeridge:

Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an alternative asset manager focused in the energy sector. The firm is differentiated by its direct investment approach, deep technical knowledge, active portfolio management and proprietary research and data gathering. Current investments include Civitas Resources, Inc., Silverbow Resources, Inc., Sitio Royalties Corp., Titan Exploration, and Kimmeridge Texas Gas, which holds a significant acreage position in the Eagle Ford with geographic proximity to growing Gulf Coast LNG demand.

On August 2, 2023, Kimmeridge announced the closing of its sixth flagship fund, with over $1 billion in new capital commitments to acquire and develop oil-and-gas assets.

Website: www.kimmeridge.com    LinkedIn: https://www.linkedin.com/company/kimmeridge/mycompany/

Media Inquiries:

Commonwealth LNG                                                                                       
Lyle Hanna
Vice President, Corporate Communications  
Office: 346-352-4436
Direct: 281-794-9606                       
Email: lhanna@teamcpl.com          

Kimmeridge
Daniel Yunger / Hallie Wolff / Emma Cloyd
Kekst-Kimmeridge@kekstcnc.com 
917-574-8582 / 917-842-1127