Liquefied natural gas trading firm Gunvor has signed a deal securing LNG off-take and gas supply with an export terminal project on the Louisiana Gulf Coast.
The marketing and gas supply agreement with Commonwealth LNG includes the full capacity of the facility. In addition, Gunvor will commit to taking up to another 3 million metric tonnes per year.
Commonwealth LNG is a planned 8.4 MTPA (million tonnes per annum) export terminal project on the Calcasieu River at the Gulf Coast near Cameron, Louisiana. The project’s planners expect to deliver first ships of LNG in the second quarter of 2024.
“In this highly competitive market, it is critical for companies – particularly ones pursuing an LNG greenfield project – to recognize their core competencies and strengths,” said Kalpesh Patel, Gunvor Co-Head of LNG Trading. “Commonwealth LNG’s engineering and procurement team is best in class. And, now, with the comprehensive support of Gunvor’s LNG and US Gas marketing team, Commonwealth LNG will excel not only at controlling costs and project execution, but also at commercializing their project and creating the lowest cost offering on the U.S. Gulf Coast.”
Gunvor is an international energy trading house. Earlier this year, the U.S. Energy Information Administration reported that LNG exports to Europe alone were increasing to a peak of 4.7 billion cubic feet per day (BCF/d).
Overall, U.S. exports of LNG exceeded 10 BCF/d this year and are expected to grow as more terminals are built on the coasts. Eagle LNG is moving toward construction of a facility in Jacksonville, Fla. (which would transport LNG to the Caribbean and South America), while Cheniere Energy, Sempra LNG and others have recently completed projects on the Gulf Coast.
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LNG was a key part of the content offered at POWERGEN International last week in New Orleans. It will also be important at POWERGEN 2020 happening Dec. 8-10, 2020, in Orlando. The call for abstracts will go out early next year.