Post by : Bianca
Haleem
Mubadala Energy has confirmed that Caturus LLC has achieved a crucial Final Investment Decision (FID) for the Commonwealth LNG initiative in the United States. This decision encompasses the successful closure of $9.75 billion in financing aimed at developing a liquefied natural gas (LNG) export facility in Cameron Parish, Louisiana, with a capacity of 9.5 million tonnes per annum (Mtpa).
The FID signals the commencement of extensive construction work for the LNG terminal, recognized as one of the most economically efficient LNG endeavors in the US. The project garnered substantial interest from both equity and debt financiers, culminating in total financial commitments reaching $21.25 billion.
Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth LNG, pointed out that this significant milestone is a result of years of meticulous planning, robust partnerships, and a commitment to constructing a fully integrated “wellhead-to-water” LNG framework.
Moreover, the initiative has secured long-term supply agreements with renowned global firms such as EQT, Glencore, Mercuria, PETRONAS, and Aramco Trading.
The first phase of the development is projected to yield over $3 billion in annual export revenue when operations commence in 2030.
Mubadala Energy holds a 24.1 percent interest in the Caturus platform, which encompasses Commonwealth LNG alongside upstream natural gas operations. The company is also contributing as an equity partner in the funding of the project.
Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, emphasized that the FID is a pivotal milestone for Commonwealth LNG and a critical advancement in the firm’s comprehensive gas strategy.
He added that this investment not only fortifies Mubadala Energy's international growth strategy but also enhances its position across the global gas value chain.
Additionally, Canada Pension Plan Investment Board (CPP Investments) will inject an extra $1.2 billion into the project, raising its total stake in the Caturus platform to 31 percent, including previous investments.
Bill Rogers, Managing Director and Head of Sustainable Energies at CPP Investments, stated that Caturus stands out due to its integrative approach encompassing natural gas production and LNG exports, positioning the platform to effectively support long-term energy reliability and market needs.
Other key financial backers of the project include EOC Partners, BlackRock-managed funds, and an Ares Infrastructure Opportunities fund.
Caturus has also permitted Technip Energies, the engineering, procurement and construction (EPC) collaborator for Commonwealth LNG, to initiate the procurement of major equipment for the facility. The project will utilize modular construction techniques to enhance safety and operational efficiency.
The LNG facility will incorporate six Baker Hughes mixed-refrigerant compressors powered by LM9000 gas turbines, six Honeywell main cryogenic heat exchangers, and four Titan 350 gas turbine-generators from Solar Turbines. The terminal will also be equipped to load LNG carriers with capacities of up to 216,000 cubic meters.
Caturus CEO David Lawler remarked that the demand for global gas is climbing rapidly, and the company aims to establish itself as a leading integrated natural gas producer and LNG exporter in the United States.
Prior to the Commonwealth LNG FID, Caturus broadened its upstream portfolio by acquiring Galvan Ranch natural gas assets from SM Energy, allowing the company to now produce over 1 billion cubic feet equivalent of natural gas per day on a net basis, placing it among the top 10 private natural gas producers in the US.
English
