Commonwealth LNG, Kimmeridge Close Investment on Natural Gas Export Facility

Commonwealth LNG has announced the closing of development capital from private funds handled by Kimmeridge Energy Management Company—a firm specializing in managing alternative assets in the energy sector. The closed investment finalizes the development funding for Commonwealth LNG to reach afinal investment decision (FID) on its 9.3 million tons per annum (mtpa) LNG export facility in Cameron, LA.

"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."

Kimmeridge and Commonwealth LNG have structured terms for a secondary agreement—a commitment to a 20-year, 2 mtpa LNG offtake from the facility with the associated gas supply. The agreement features an investment of additional equity in Commonwealth LNG to fund the construction of the export facility.

Rendering of LNG export facility in Cameron, LA; Image Credits: Commonwealth LNG

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. 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."

Moelis—a global investment firm that provides financial advice to corporations—served Commonwealth LNG as the exclusive placement agent for the transaction with Kimmeridge.

"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.