Commonwealth LNG, EQT Enter Heads of Agreement for LNG Supply

Commonwealth LNG and EQT have structured a head of agreement (HOA) for the supply of 1 million tons per annum (MTPA) of LNG on a take-or-pay basis for 15 years. This agreement additionally covers the associated gas supply to Commonwealth LNG’s facility in Cameron, LA.

"We are very pleased to add a US producer of EQT's stature to Commonwealth's customer portfolio,” said Commonwealth LNG Founder and Executive Chairman Paul Varello. "This agreement will connect EQT's vast natural gas assets to Commonwealth's LNG facility, thus creating a value chain from wellhead to water. Accessing EQT's natural gas production, which achieved a 20 percent year-over-year reduction in Scope 1 and Scope 2 greenhouse gas emissions, supports Commonwealth's goal of achieving environmental standards."

A final investment decision for the project is expected to be delivered in Q1 2024, with the initial LNG delivery expected in 2027. The construction schedule will be fast-tracked through a modular approach and the fabrication of major components occurring offsite.

The agreed-upon terms of the HOA would take effect at the start of the facility’s commercial operation. Final terms of the agreement are pending further negotiations between parties.