Commonwealth LNG in the News

May 2nd, 2019

Commonwealth LNG export terminal still on track for 2024

The approximately $4 billion Commonwealth LNG export terminal is expected to reach final investment decision and get final federal approval by the first quarter of 2021 and start operations by early 2024, officials said on Wednesday.

Scott Ray, Commonwealth LNG vice president, told Gulf Coast Industrial Group members that each of the facility’s six liquefaction trains will be capable of producing 1.4 million tons of LNG per year, or a total of 8.4 million tons annually. The project site is located on 400 acres in Cameron Parish at the west bank of the Calcasieu Ship Channel at the Gulf of Mexico.

April 1st, 2019

U.S. LNG Developer Is Offering Shorter-Length Supply Contracts

By Naureen S. Malik
(Bloomberg) — In the fast-expanding global liquefied
natural gas market, long-term supply contracts lasting 20 years
have become the norm. But one aspiring U.S. producer is
challenging that model.

Closely held Commonwealth LNG, which is seeking to build a
$4 billion Louisiana export terminal, is offering potential
customers contracts as short as 10 years, Chief Executive
Officer Paul Varello said in a telephone interview. It’s also
offering fixed-price terms, and is willing to sell for less than
the U.S. industry standard of 115 percent of the Henry Hub
benchmark, he said.

The possibility of shorter-term contracts shows how LNG is
becoming more commoditized, as production and trading volumes
continue to grow. Commonwealth is facing fierce competition not
only from the world’s biggest LNG suppliers like Qatar and Royal
Dutch Shell Plc but also about a dozen other U.S. export
projects.

“I am hopeful that we will get to agreements with several
of the customers” this week at the industry’s biggest event of
this year, LNG19, in Shanghai, Varello said.

 The Houston-based developer expects to receive approval for
its project from the Federal Energy Regulatory Commission in
late 2020 and then make a final investment decision in the
fourth quarter of next year, Varello said. Start-up would then
follow in the first quarter of 2024 or even earlier.
Varello said the company will need six customers to be able
to build 8.4 million tons per year of LNG capacity.

To contact the reporter on this story:
Naureen S. Malik in New York at nmalik28@bloomberg.net

To contact the editors responsible for this story:
Simon Casey at scasey4@bloomberg.net
Carlos Caminada

March 5th 2019

Robert Powers nominated 2019 Vice Chair, LEEA

At the February 5, 2019, LEEA Executive Board meeting, the 2019 officers were nominated and determined.

 

2019 Chair – Maury Hudson, Magnolia LNG

2019 Treasurer – Ernie Broussard, Hunt Guillot & Associates

2019 Vice Chair – Robert Powers, Commonwealth LNG

Louisiana Energy Export Association (LEEA) brings together leaders in the Louisiana LNG Industry to consider matters relating to industry business, to foster education and understanding of shared challenges, and to promote policies beneficial to the industry before federal, state and local government agencies.

March 7th, 2019

2019 USCG Issues Letter Of Recommendation to FERC that the Calcasieu Waterway be Regarded as Suitable for Commonwealth LNG’s Terminal

Based upon a comprehensive review of the applicant’s WSA and after consultation with State and local port stakeholders, I recommend that the Calcasieu River Ship Channel be considered suitable for accommodating the type and frequency of LNG marine traffic associated with this project.

March 5th, 2019

Arup to Advise on Industry First LNG Modular Tank Design

Arup has announced that it has been selected by Commonwealth LNG to provide specialist engineering services for the development of industry first LNG modular storage tanks.

 

According to the statement, Arup is supporting Commonwealth LNG in its aim to obtain final approval from the US
Federal Energy Regulatory Commission (FERC) by providing structural, mechanical and naval architecture engineering services in relation to the design of the modular storage tanks to be used at the facility. Once approved, Arup claims that construction is expected to begin in 2021.

February 20th, 2019

CEO for Commonwealth LNG -Paul Varello, speaks in Japan about the Need for Innovation in Designing and Building Future LNG Liquefaction Plants

The CWC LNG & Gas Summit took place in Tokyo, Japan on 19-20 February 2019 with participation and support from Japan’s Ministry of Economy, Trade and Industry (METI), JERA Co. Inc., Tokyo Gas and the Institute of Energy Economics Japan (IEEJ), along with more than 250 senior executives from across the LNG and gas value chain in both Japan and globally.

February 5th, 2019

Commonwealth LNG’s EVP, Robert Powers, Named 2019 Vice Chair, LEEA

At the February 5, 2019 LEEA Executive Board meeting, the 2019 officers were nominated and determined naming Commonwealth LNG’s Executive Vice President, Robert Powers, as Vice Chair. LEEA brings together leaders in the Louisiana LNG Industry to consider matters relating to industry business, to foster education and understanding of shared challenges, and to promote policies beneficial to the industry before federal, state and local government agencies.

December 21st, 2018

Commonwealth LNG files draft Resource Report 13 with FERC.

Commonwealth LNG submitted draft Resource Report 13 to the Federal Energy Regulatory Commission (FERC) for its proposed natural gas liquefaction and export facility in Cameron Parish, Louisiana.

“With the submission of draft Resource Report 13 to the FERC, Commonwealth LNG continues to actively progress the development of its export facility,” said Paul Varello, President and CEO of Commonwealth Projects. “Commonwealth LNG is focused on managing risk and lowering capital cost resulting in a platform that enables the competitive delivery of LNG to any market, under shorter and more flexible contract terms.”

October 18th, 2018 

Commonwealth LNG Selects Transport Technology Firm, Mammoet USA South, Inc.

Commonwealth LNG is pleased to announce that Mammoet USA South, Inc., a global leader in heavy lifting and transport technology, has been awarded a consulting services agreement for Commonwealth’s LNG export terminal located in Cameron Parish, Louisiana.

The agreement secures Mammoet’s extensive experience and expertise in heavy lifting and transport of large process modules in support of Commonwealth’s Front-End Engineering Design (FEED) and Federal Energy Regulatory Commission (FERC) permitting process. Commonwealth LNG anticipates filing its Draft Resource Reports with FERC on Dec. 1, 2018.

October 12th, 2018

Commonwealth LNG Selects TechnipFMC, CH-IV, Lloyds

 

Commonwealth LNG signed an engineering service contract with TechnipFMC, a world-wide leader in LNG engineering, for engineering services and development of Resource Report 13 for the proposed 8.4 MTPA LNG export terminal located on the western shore at the mouth of the Calcasieu Ship Channel in Cameron Parish, Louisiana.

Commonwealth LNG signed a master services agreement with Lloyd Engineering for marine facility and turning basin design, and support of the Water Suitability Assessment (WSA), with the U.S. Coast Guard. Collectively with the Maritime Pilots Institute in Covington, Louisiana, the group completed simulations and then subsequently prepared a draft WSA.

February 22nd, 2018

Notice of Intent to Prepare an Environmental Impact Statement for the Planned Commonwealth LNG Project

The staff of the Federal Energy Regulatory Commission (FERC or Commission) will prepare an environmental impact statement (EIS) that will discuss the environmental impacts of the Commonwealth LNG Project involving construction and operation of facilities by Commonwealth LNG LLC (Commonwealth LNG) in Cameron Parish, Louisiana.

The Commission will use this EIS in its decision-making process to determine whether the project is in the public interest.

January 3rd, 2018 

Commonwealth LNG Names SMBS, Debt Financial Advisors

Commonwealth LNG has announced that Sumitomo Mitsui Banking Corporation (SMBC) will serve as its debt financial advisors for a Liquefied Natural Gas (LNG) Export Terminal on the west bank of the Calcasieu River in Cameron, Louisiana.

Commonwealth’s President and CEO Paul Varello said, “We are pleased to be partnered with this global financial leader as we move forward with our innovative LNG investment. SMBC’s experience and reputation in capital asset advice and management will help ensure the stability and predictability of our development project in southwest Louisiana.”

November 1st, 2017

Commonwealth LNG joins LNG industry leaders in becoming a member of the Louisiana Energy Export Association (LEEA).