Mubadala Energy Endorses $9.75B Commonwealth LNG Initiative in the US

Post by : Bianca Suleiman

Caturus LLC, backed by Mubadala Energy, has successfully reached a Final Investment Decision (FID) for the Commonwealth LNG project in the US. This pivotal step includes securing $9.75 billion in financing for a liquefied natural gas (LNG) export facility in Louisiana with a capacity of 9.5 million tonnes per annum (Mtpa).

With this FID, construction is set to commence at this promising LNG export terminal, known for its cost-effectiveness among US projects. The initiative has drawn considerable interest from equity and debt investors, resulting in a total financial backing of $21.25 billion.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth LNG, highlighted that this achievement showcases years of strategic planning, robust partnerships, and commitment to establishing a comprehensive “wellhead-to-water” LNG framework.

Long-term agreements for LNG supply have already been established with major players such as EQT, Glencore, Mercuria, PETRONAS, and Aramco Trading.

Phase 1 is anticipated to yield over $3 billion in annual export revenue once operations commence in 2030.

Mubadala Energy holds a 24.1 percent stake in the Caturus platform, which includes Commonwealth LNG and upstream natural gas operations, and is actively participating as an equity investor in the financing.

Mansoor Mohamed Al Hamed, CEO of Mubadala Energy, described the FID as a significant leap for Commonwealth LNG and a crucial milestone in the company’s integrated gas strategy.

He emphasized that this investment enhances Mubadala Energy's international growth trajectory and fortifies its role across the global gas value chain.

The Canada Pension Plan Investment Board (CPP Investments) will contribute an extra $1.2 billion, raising its total stake in the Caturus platform to 31 percent.

Bill Rogers, Managing Director and Head of Sustainable Energies at CPP Investments, noted that Caturus' comprehensive approach to natural gas production and LNG exports positions it strategically for long-term energy reliability and market demand.

Additional financial partners include EOC Partners, BlackRock-managed funds, and an Ares Infrastructure Opportunities fund.

Caturus has authorized Technip Energies to start procuring essential equipment for Commonwealth LNG's facility using modular construction methods aimed at enhancing safety and efficiency.

The LNG facility will consist of six Baker Hughes mixed-refrigerant compressors operated by LM9000 gas turbines and six Honeywell main cryogenic heat exchangers, alongside four Titan 350 gas turbine-generators by Solar Turbines, designed to accommodate LNG carriers with capacities of up to 216,000 cubic metres.

Caturus CEO David Lawler stated that global gas demand is on a swift uptick, and the company aspires to become a premier integrated natural gas producer and LNG exporter in the US.

Before the FID announcement, Caturus bolstered its upstream portfolio by acquiring Galvan Ranch natural gas assets from SM Energy, now producing over 1 billion cubic feet equivalent of gas per day, ranking among the top 10 private US gas producers.

#Global News #World News #Business News #Business & economy