Commonwealth LNG in the News
Oct. 11, 2021
Commonwealth LNG featured on S&P Global Platts Capitol Crude podcast
Oct. 9, 2021
CEO Paul Varello slated for industry leaders presentation at Houston Strategy Forum
Interview with
Mr. Paul Varello
Founder & President
Commonwealth LNG
We are hosting Mr. Paul Varello, Founder & President, Commonwealth LNG, at the Global Gas & Natural Gas Symposium, being held on November 11, 2021.
We interviewed Mr. Varello in preparation for the symposium (video links are included below). The innovative approach with which Mr. Varello is solving age-old problems is impressive. It is helping reduce costs, reduce the environmental impact, and generate faster progress.
It is wonderful to see an executive leave his successful corporate career and take on risks to become an entrepreneur. It creates tremendous value for the community, the nation, and the world.
Part 1: Switching from Corporate America to become an Entrepreneur
Why did Mr. Varello leave a successful corporate career? What is his core philosophy as he created his company? What is the significance of the name Commonwealth?
Part 2: About Commonwealth LNG and Its Innovative Approach
What is the focus of Commonwealth LNG? How is it driving innovation that will help it reduce cost significantly and win more customer engagements?
Part 3: Contracting Model
How Commonwealth LNG’s modular approach is giving it the flexibility in contracts that allows customers to sign contracts in an emissions sensitive environment.
How does Commonwealth LNG determine its customer engagement size?
Part 4: Innovative Modular Approach
The amazing thought process behind using an innovative modular approach to building an LNG plant with lower environmental impact, faster speed of development, and lower costs.
Part 5: Career Advice
How being flexible can work wonders for your career. Could flexibility be more important than skill?
Part 6: Why Attend the Global Gas & LNG Symposium
Reprinted from September 2021 LNG Industry
Lyle Hanna, Commonwealth LNG, USA, provides an
overview of the 8.4 million tpy export LNG terminal project
under development in Louisiana, US.
Resilience. Residents of Cameron Parish, Louisiana, US, have come to know the full measure of the term as they continue to rebound from taking the brunt of two 2020 hurricanes that coincided with a global pandemic and sharp downturn in the energy industry so vital to their economic wellbeing.
Commonwealth LNG’s 8.4 million tpy export terminal project under development at the mouth of the Calcasieu Ship Channel near Cameron was also impacted by these events. However, Commonwealth now looks to not only aid in the region’s ongoing recovery, but also expand Southwest Louisiana’s prominence as a US leader in exporting clean and affordable LNG to all corners of the world.
Leading the development
The project’s leadership team is committed to building a world-class LNG facility by staying relentlessly focused onmanaging risk and lowering capital cost. The effort is being
led by Commonwealth CEO Paul Varello, who founded the company in 2014.
“I took the time to assemble the best team I could find for this very important project, and I continue to be very pleased with the results,” said Varello. “My teammates share my vision for controlling costs while improving schedule, quality, operability, and safety. At our core we are creative engineers and project developers with strong experience in LNG.”
Varello has been in the engineering and construction industry for more than 50 years. He was formerly CEO of Sterling Construction Company, a publicly held construction company with over 6000 employees building major infrastructure projects. Prior to Sterling, he was Founder of Commonwealth Engineering and Construction Company, specialising in the design and construction management of refining, chemical, LNG, and gas processing projects.
Varello began his career at Fluor Corporation and for 18 years was involved in the design and construction of hundreds of major projects around the globe, including modular processing plants built in remote and inhospitable locations in the Middle East and Alaska, US.
Based on this extensive background, Varello recognised early that success in the next generation of LNG facilities would require a more engineering-focused approach to drive down costs and meet escalating environmental standards.
“We are an engineering-driven team with finance and commercial support,” says Varello. “Most other projects are the opposite. Because of this, we have spent the time necessary on the front end designing a facility that will allow us to achieve the lowest cost offering in the Gulf Coast.”
Integral to this success is a highly modularised approach to substantially reduce both costs and schedule. Commonwealth has teamed with Technip Energies for the preliminary stages of engineering. Technip Energies has unparalleled modular LNG experience, delivering 22 million tpy of modularised LNG capacity between 2016 and 2019. Among recent examples of Technip Energies’ work is the Yamal LNG project in Russia, where large and complex modules were successfully implemented in harsh climate conditions.
Commonwealth LNG represents a next generation LNG export facility designed to provide a platform for meeting the unique requirements of the next wave of LNG demand. While the pandemic depressed energy markets worldwide, LNG has been surprisingly resilient, and is currently experiencing a resurgence in pricing and demand.
“We expect the LNG market to continue its growth and increase significantly by the time our facility comes online in 2025,” said Varello. “Projections show the global LNG market will need additional contributions from new supply projects starting right about the middle of the decade, and the requirements grow aggressively thereafter. In the meantime, we are seeing trends toward shorter duration contracts and renewed emphasis on the ability to offer low-cost solutions.”
Varello also sees increasing interest for offtake agreements based on Henry Hub-based pricing.
“The robust production of shale gas results in stable current and forward prices for US natural gas, particularly when compared to other international indexes,” Varello notes. “Our analysis indicates that international LNG buyers will choose to allocate around 30% of their long-term supply portfolio to US-sourced, Henry Hub-priced LNG in order to take full advantage of this lower volatility.”
Looking to ensure its share of this market segment, Commonwealth is offering tenors as short as 10 years and the lowest costs for tolling services in the US.
Low CAPEX = low cost
The Commonwealth LNG facility site is 393 acres, including a storm surge wall built to withstand severe weather events, including Category 5 hurricanes. The perimeter wall will be 26 ft high on the Gulf and ship channel sides and 21 ft high on the inland sides.
Locating the facility right on the coast offers transit cost savings, better access during periods of fog, and advantages when channels to more inland facilities become blocked (grounded ships, barges, sunken vessels, or debris) to deep draft ships such as LNG tankers.
The project’s 3-mile long, 42 in. dia. feed gas pipeline will connect the LNG facility with existing intrastate and interstate pipelines, creating a header system for the receipt of feed gas. The feed gas will be pretreated to remove mercury, carbon dioxide, water, and heavy hydrocarbons. It will then be routed to the liquefaction unit for multiple stages of cooling at high pressure. In each stage, the gas stream will be cooled and partially liquefied at the lower temperatures provided by the refrigeration cycle.
Six liquefaction trains, each with 1.4 million tpy of nominal liquefaction capacity, will use Air Products and Chemicals Inc.’s proprietary single mixed refrigerant (AP-SMRTM) technology. Air Products is one of the world’s leading providers of natural gas liquefaction technology, coil-wound heat exchangers, and related equipment and services. The company has designed, manufactured, and successfully started-up nearly 120 mid scale and large LNG plants.
Commonwealth’s modular approach emphasises offsite fabrication for the liquefaction trains, other utilities, and larger piping racks. In addition to the reduction in cost and construction schedule, the plan minimises on-site laydown space and construction workforce requirements.
“We are designing and building a project that will start-up easily and run efficiently,” noted Varello. “We believe that our modular design could be efficiently replicated on other LNG projects.”
The company is even extending modularisation to its storage tanks. The tanks are being yard-fabricated with a 9% nickel steel inner containment wall and a carbon steel outer
The marine facilities are designed to accommodate LNG carriers ranging from 10 000 m3 (small scale carriers) to 216 000 m3 (Q-flex carriers). Four 16 in. dia. loading arms will be installed; two liquid arms, one hybrid arm that can handle liquid or vapour, and one vapour-only loading arm.
Commonwealth LNG’s six process trains are each being designed as two connected modules for the pre-treatment and liquefaction processes. The modular components will be fabricated in subcontracted yards, likely in Asia, before being preassembled and transported by heavy lift vessels or large barges to the site for installation. Equipment carriers will be offloaded and transported to the prepared foundations by crane or self-propelled modular transporters. Most of the facility piping will also be fabricated and loaded into modules.
Installation of LNG process components, major utility equipment, and interconnecting piping will be co-ordinated and sequenced for efficient, simultaneous workflow. Equipment and modules will be delivered after foundation pads have been completed to eliminate the need for additional on-site storage. System testing will be conducted shortly after installation.
Over the duration of its construction period, the project is expected to create an average of 800 on-site engineering and construction jobs, with the workforce peaking at approximately 2000. Once operational, staffing will include slightly more than 200 personnel.
At only 36 months from Final Investment Decision (FID) to substantial completion, Commonwealth’s facility will have one of the shortest implementation schedules to date for a baseload LNG project. Much of this expected schedule advantage stems from the proposed mid scale, multi-train modular strategy, which makes train fabrication more compact, simpler, and more repetitive, and reduces both the quantity and duration of needed on-site resources.
Meeting current and future environmental goals
As the newest entrant on the growing southwest Louisiana LNG landscape, Commonwealth will be evaluating technically feasible options in its design for reducing the amount of CO2 and methane generated. Varello said his company is also exploring various partnering relationships with suppliers of technologies capable of capturing CO2 emissions for commercial use or sequestration.
Although liquefaction represents only a small portion of the lifecycle impact of the natural gas carbon footprint, Commonwealth is committed to minimising or eliminating carbon emissions toward a goal of providing carbon-neutral LNG to support long-term national and international goals in climate management. LNG
August 02, 2021
Summit and Commonwealth LNG Sign MOU for 1 MTPA of LNG Offtake for Bangladesh
May 21, 2021
LNG Industry Supports Cameron Parish Revitalization Group
The Cameron Parish Lions Club donated $150,000 it had raised from various companies representing the SW Louisiana LNG industry to provide seed money for the Cameron Parish Revitalization Group. Commonwealth LNG was one of the contributing companies recognized in this effort. The Cameron Parish Revitalization Group seeks long-term solutions to help small businesses and homeowners to return to the parish following devastating hurricanes in 2020.
Feb. 26, 2021
Jan. 22, 2021
Commonwealth LNG Tries New Approach to Contracting
Jan. 18, 2021
Commonwealth LNG Launches Tender for LNG Offtake
Oct. 24, 2020
Commonwealth LNG Hosts Cameron Parish Hurricane Recovery Lunch
Commonwealth LNG provided free spaghetti lunch meals on Saturday Oct. 24 at the Johnson Bayou Fire Station for area residents and all support workers as Cameron Parish continues its hurricane recovery efforts.
The Johnson Bayou Fire Station has doubled as a hurricane relief distribution center during recovery from the two major hurricanes that recently ravaged the Cameron Parish area.
Commonwealth LNG Director of Communications Lyle Hanna was among those serving lunches to Cameron Parish residents.
The catering team from Brown’s Grocery of Hackberry prepared the spaghetti lunches for the drive-thru event.
Oct. 19, 2020
National Marine Fisheries Service Completes Section 7 Consultation for Proposed CLNG Project
Commonwealth LNG has received clearance under Section 7 of the Endangered Species Act (ESA) from the National Marine Fisheries Service (NMFS) for development of an 8.4 mpta LNG facility in Cameron Parish, Louisiana. NMFS, also known as National Oceanic and Atmospheric Administration (NOAA) Fisheries, assessed potential threats to Threatened and Endangered marine species listed on the ESA from construction and operation of the proposed facility. NMFS included the following summarization: “Because all potential project effects to listed species and critical habitat were found to be extremely unlikely to occur, insignificant, or beneficial, we conclude the proposed action is not likely to adversely affect listed species and critical habitat under NMFS’s purview.”
July 20, 2020
Commonwealth cites modular advantage for EPC.
NATURAL GAS WEEK®
SPECIAL REPRINT REPRODUCED WITH PERMISSION BY ENERGY INTELLIGENCE FOR COMMONWEALTH LNG.
COPYRIGHT © 2020 ENERGY INTELLIGENCE GROUP. UNAUTHORIZED COPYING, REPRODUCING OR DISSEMINATING IN ANY MANNER,
IN WHOLE OR IN PART, INCLUDING THROUGH INTRANET OR INTERNET POSTING, OR ELECTRONIC FORWARDING EVEN FOR INTERNAL USE, IS PROHIBITED.
LNG
Struggling LNG Sector Now Faces Shrinking EPC Pool
KBR’s exit from an already small group of companies capable of building complex LNG projects is a potential cause for concern in an already struggling industry. But several analysts and industry officials expressed confidence in the sector’s ability to adapt.
KBR last week told developer Pieridae it is no longer prepared to negotiate and conclude a lump sum, turnkey engineering, procurement, construction and commissioning (EPCC) contract for the Goldboro LNG facility in Nova Scotia. The move comes after the longtime contractor announced it was turning away from building large oil and gas projects as it shifts to government contracts (NGW Jun.29’20).
KBR’s decision follows McDermott’s emergence from bankruptcy, and a delay in the planned split of LNG contractor TechnipFMC (NGW Jul.6’20).
The fate of contracts KBR has for a number of planned US-based LNG projects — including Pointe LNG, the ailing Magnolia LNG, and the Freeport LNG Train 4 expansion — is also in question.
So how worried should US LNG developers be about this latest hurdle? “I don’t believe it should be of great concern, as KBR and others may have been considering exits of this type for some time,” said Bryan Benoit, partner in energy at Grant Thornton.
“This will give the current contractors the time to bring on board and possibly recruit and train former KBR employees and train sufficient others and new ones as well,” Benoit told Energy Intelligence. “The pool may shrink but the companies in it will emerge large and healthy and capable of serving the market.”
“There are a number of other constraints [to building LNG projects] than the number of contractors,” said Fred Hutchison, president of LNG Allies, which lobbies on behalf of US projects. Those include a global gas glut, low prices, falling coronavirusrelated demand and difficulty getting financing.
As Australia discovered some years ago, the number of projects concurrently under construction has a significant upward impact on costs. In the US, several projects that people expected to go ahead have not, Hutchison told Energy Intelligence, easing the pressure on EPC contractors.
“There are lots of what-ifs” for all these projects, Hutchison said, adding that if some get further delayed “it stretches all those out,” allowing the industry to adapt to fewer EPC firms.
Also easing the way forward for LNG projects is modular construction, which leads to a reduced role for EPC contractors.
“Modular-based LNG projects, like Commonwealth LNG, can pre-emptively address these costs by having the majority of the fabrication performed offsite at predetermined prices, avoiding the large cost-overruns sometimes experienced by facilities erected entirely on site,” said Paul Varello,
founder and CEO of Commonwealth LNG, a proposed six-train, 8.4 million ton per year (1.2 billion cubic feet per day), $4 billion plant. It is to be built on a 400 acre site near the mouth of the Calcasieu River.
“We believe an adequate pool of contractor resources remains to address the industry’s needs going forward,” Varello said. “Attrition ends, and often reverses, with the improved health of the overall economy and associated energy consumption.”
Will the industry still use lump-sum turnkey (LSTK) contracts that put the cost risk onto contractors, which has driven KBR out of the business? “While there may be modifications to the approach, the assurances needed for the financing of large-scale capital projects would suggest that LSTK will continue to be a significant part of the equation,” said Varello.
And that is even the case in the Covid-19 era. “We agree this is a unique time,” Varello said. “It is likely future risks or delays associated with Covid-19-like events can be managed contractually via the force majeure provision and/or business delay insurance.”
Commonwealth itself is unruffled by the trials of its own contractor. “We continue to value Technip as a partner,” said Varello. “Developments related to their company’s ownership structure over the past year have had negligible impact on their ability to be responsive on our project.”
“With this notice from KBR, we are looking at all of our options, including discussing the matter with legal counsel to determine the most appropriate next steps,” Sorensen said. “There are other reputable and experienced firms who have the expertise to provide these services, with some already indicating a willingness to replace KBR. We have had discussions with several of them to gauge their interest.”
Meanwhile, KBR’s decision to walk away from building the Goldboro LNG terminal has Pieridae Energy studying all its options, including legal ones. Pieridae CEO Alfred Sorensen said KBR’s decision is an apparent contravention of its obligation under the terms of a services agreement from March 2019.
“With this notice from KBR, we are looking at all of our options, including discussing the matter with legal counsel to determine the most appropriate next steps,” Sorensen said. “There are other reputable and experienced firms who have the expertise to provide these services, with some already indicating a willingness to replace KBR. We have had discussions with several of them to gauge their interest.”
John Sullivan, Houston, and Michael Sultan, Washington
May 5, 2020
Coastal Use Permit Notice Period Begins for Commonwealth LNG Project
The Office of Coastal Management of the Louisiana Department of Natural Resources (DNR) posted a Notice today initiating a 25-day comment period on a Coastal Use Permit Application for the proposed Commonwealth LNG Facility in Cameron Parish. The Coastal Use Permit process is part of the Louisiana Coastal Resources Program (LCRP), which is an effort among Louisiana citizens, as well as state, federal, and local advisory and regulatory agencies, to preserve, restore, and enhance Louisiana’s valuable coastal resources. The purpose of the Coastal Use Permit process is to make certain that any activity affecting the Coastal Zone, such as a project that involves either dredging or filling, is performed in accordance with guidelines established in the LCRP. The guidelines are designed so that development in the
Coastal Zone can be accomplished with the greatest benefit and the least amount of damage.
Details of the Permit Application can be found on DNR website in the Coastal Use Permits section.
April 17, 2020
Commonwealth LNG Approved to Export LNG to Free Trade Agreement Nations
HOUSTON, TEXAS – Commonwealth LNG received notification today that its proposed liquefied natural gas (LNG) facility to be located in Cameron Parish Louisiana is federally authorized to export LNG to any country with which the United States has entered into a free trade agreement (FTA) requiring national treatment for trade in natural gas.
The approval came in the form of an order from the U.S. Department of Energy’s Office of Fossil Energy in response to an application Commonwealth originally filed in October of 2019 and supplemented earlier this week. Under its provisions, Commonwealth LNG will be authorized to export up to 9.5 million metric tons per annum (mpta) of LNG for a 25-year term to FTA nations. A portion of Commonwealth LNG’s application that seeks authorization to export LNG to non-FTA countries will be reviewed in a separate order.
“We’re pleased to share news of this positive development in the progress of our project during an otherwise challenging period in the energy industry,” said Commonwealth LNG President and CEO Paul Varello. “The current disruption in the LNG market is likely to put an increased focus on cost-efficient processes to develop and operate these facilities and we believe our Cameron Parish facility will be a leading option in that regard.”
Commonwealth LNG expects to take a final investment decision in Q2 of 2021 and deliver its first shipments of LNG in Q3 of 2024.
March 11, 2020
Commonwealth addresses industry challenges at LNG conference
A March 10 conference in Houston headlined “Supporting U.S. LNG Exports Through Global Infrastructure Development” also acknowledged some of the headwinds the industry now faces due to concerns of a worldwide pandemic and the associated impacts on the global economy. Among the speakers was Commonwealth LNG President and CEO Paul Varello, who described the tough commercial environment faced by LNG developers. “This is not for the faint of heart…” he said. “Right now, we have to hunker down.”
Varello’s comments were part of a session on New Designs and Approaches to Grow U.S. LNG Export Capacity. His global perspective has been shaped, in part, by Commonwealth LNG’s 8.4 million mtpa export project in Cameron Parish, Louisiana. Commonwealth targets economic savings attributable to a modular approach with liquefaction trains built in Asia. All six of the project’s LNG storage tanks will also built offsite to reduce cost and schedule.
The conference was jointly sponsored by the Global Energy Institute of the U.S. Chamber of Commerce; the U.S. Trade and Development Agency; and LNG Allies, the U.S. LNG Association.
March 10, 2020
Commonwealth LNG to sponsor the 18th CWC World LNG & Gas Series: Americas Summit & Exhibition
LNG and natural gas professionals from around the world will converge in Lake Charles, Louisiana November 10-12 at the 18th CWC World LNG & Gas Series: Americas Summit and Exhibition. Commonwealth LNG is proud to be serving as a Platinum Sponsor for this major industry gathering.
Produced by the CWC Group, previous Summits have been held in New Orleans, Houston, Austin and San Antonio. This year’s move to Lake Charles recognizes the area’s emergence as the epicenter of activity in the LNG industry.
“We’re pleased to be involved in supporting this important event as a Platinum Sponsor. The Lake Charles Summit will attract many key leaders of the LNG industry to this area,” said Commonwealth LNG President and CEO Paul Varello.
Commonwealth LNG is currently developing an 8.4 MTPA export terminal project in Cameron Parish, south of Lake Charles, at the mouth of the Calcasieu River and the Gulf of Mexico. The facility will employ a fully modular design that will result in a platform that enables the competitive delivery of LNG to any market under attractive contract terms. Construction is anticipated to begin in 2021 with commercial operation commencing in 2024.
Further information about the Lake Charles Summit is available at https://lngamericas.cwclng.com/conference/.
Feb 12, 2020
Commonwealth LNG President CEO Paul Varello Interviewed at Gastech
November 25, 2019
Gunvor Enters Into Strategic LNG Marketing & Gas Supply Agreement with Commonwealth LNG
HOUSTON & GENEVA & SINGAPORE & STAMFORD, Conn.–(BUSINESS WIRE)–Gunvor and Commonwealth LNG have entered into a Strategic LNG Marketing & Gas Supply Agreement in relation to Commonwealth’s LNG export project in Cameron Parish, Louisiana.
October 29, 2019
Commonwealth LNG touts modular approach, second-mover advantage
Privately held Commonwealth LNG sees its late entrance in a crowded field of US LNG developers as an advantage, with officials saying they can apply lessons learned from the first wave of LNG export projects toward a low-cost approach that will put it ahead of its rivals.
October 21, 2019
FERC Issues Commonwealth LNG’s Notice of Schedule for Environmental Review
HOUSTON–(BUSINESS WIRE)–Commonwealth LNG is pleased to announce that the US Federal Energy Regulatory Commission (FERC) has issued Notice of Schedule for Environmental Review. The Project encompasses the construction of one liquefied natural gas plant, including six gas liquefaction trains and appurtenant facilities. Each train will have a liquefaction design capacity of approximately 1.4 million metric tonnes per annum (MTPA) for a total nominal liquefaction capacity of 8.4 MTPA.
September 03, 2019
FERC Accepts Commonwealth LNG’s Permit Application
HOUSTON–(BUSINESS WIRE)–Commonwealth Projects, LLC is pleased to announce that the US Federal Energy Regulatory Commission (FERC) has formally accepted Commonwealth LNG, LLC’s filing application. The Project encompasses the construction of one liquefied natural gas plant, including six gas liquefaction trains and appurtenant facilities. Each train will have a liquefaction design capacity of approximately 1.4 million metric tonnes per annum (MTPA) for a total nominal liquefaction capacity of 8.4 MTPA.
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.
June 12th, 2019
Commonwealth LNG and Gunvor Singapore Pte Ltd Sign Heads of Agreement
Commonwealth Projects, LLC and Gunvor Group Ltd today announced their respective subsidiaries, Commonwealth LNG, LLC and Gunvor Singapore Pte Ltd, have signed a heads of agreement (HOA).
The HOA anticipates the negotiation and finalization of a definitive 15-year liquefied natural gas (LNG) sale-and-purchase agreement (SPA) for 1.5 million tonnes per annum (Mtpa) of LNG offtake from the Commonwealth LNG export project under development in Cameron Parish, Louisiana.
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.
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.
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.
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 7th, 2019
2019 USCG Issues Letter Of Recommendation to FERC that the Calcasieu Waterway be Regarded as Suitable for Commonwealth LNG’s Terminal
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’s first LNG modular storage tanks.
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
February 5th, 2019
Commonwealth LNG’s EVP, Robert Powers, Named 2019 Vice Chair, LEEA
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 worldwide 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 the 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).
