Commonwealth LNG has signed a Heads of Agreement (HOA) with the MET Group, a European integrated energy company based in Switzerland, for the sale and purchase of one million metric tonnes per annum (mtpa) of liquefied natural gas (LNG) for 20 years from the developing Commonwealth LNG facility in Cameron, Louisiana, located on the Calcasieu River in the Gulf of Mexico.
The final terms remain subject to the negotiation of a definitive purchase and sale agreement between the two companies, Commonwealth LNG and MET Group said in separate press releases. The terms under the non-binding HOA will begin in 2027 upon the commencement of commercial operations of the facility.
Commonwealth LNG said it is focused on completing the remaining steps needed to achieve its goal of making a final investment decision on the project in the first quarter of 2024, with the first cargo deliveries expected in 2027, adding that a accelerated construction schedule would allow the project. it will be built over three years using a modular approach with major components being manufactured off-site.
The Commonwealth LNG project already has the necessary permits and will include six natural gas liquefaction trains and associated facilities that are capable of producing approximately 9.3 mtpa of LNG, according to the company’s statement.
“This agreement recognizes that US LNG can and will play a continued role in Europe’s energy transition by providing reliable and affordable natural gas to the region,” said Paul Varello, founder and executive chairman of Commonwealth LNG. “We are delighted to work with MET Group to deliver long-term LNG to contribute to the security of natural gas supply for its customers.”
“The supply of LNG to Europe is an important contributor to the diversification of gas supply and an important contributor to European energy security. LNG is also becoming an important part of MET Group’s strategy for the future” , said Benjamin Lakatos, president and CEO of MET Group.
The MET Group said it is actively increasing its share in the LNG market. In 2022 alone, MET imported more than 30 terawatt-hours (TWh) of LNG cargoes to countries such as Croatia, Greece, Spain, Belgium and the United Kingdom. In 2023, the company also secured long-term LNG capacities in Germany and expanded its range of spot capacity in Finland.
In August, Houston-based Commonwealth LNG signed a strategic agreement with Baker Hughes to work on its developing LNG facility in Cameron Parish. Baker Hughes will work with Commonwealth LNG to maximize the project’s production and minimize emissions by using Baker Hughes’ LM9000 aeroderivative gas turbine technology, according to a previous press release.
Acquisition of the MET Solar project in Italy
Meanwhile, Keppel MET Renewables (KMR), a 50-50 joint venture between Switzerland-based MET Group and Singapore-based Keppel, completed the purchase of a 100 percent stake in a solar project in southern Italy, according to an independent press release. .
With an installed capacity of 38 megawatts peak (MWp) and a total energy output of approximately 63 gigawatt-hours per year upon completion, the solar facility can power the equivalent of more than 20,000 Italian homes, according to the statement . The project is in an early stage of development, expected to reach a ready-to-build status in 2025 and begin commercial operations in 2026, according to the statement.
KMR is an established player in the Italian renewable energy market with an existing portfolio of more than 200 MWp of early and mid-stage solar projects in southern Italy expected to reach commercial operations in the coming years, according to the statement
“This is another step towards MET Group’s determined goal of achieving a renewable portfolio of two GW of installed capacity by 2026, and we expect many more to come,” said Benjamin Lakatos, Chairman and Board Member delegate of the MET group. “We are targeting further growth in wind and solar projects across the European Union, acquiring assets along the entire value chain: greenfield investments, ready-to-build projects as well as brownfield investments.”
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