Kimmeridge, Commonwealth to Provide Glencore with Gasoline, LNG

Kimmeridge Texas Gasoline (KTG) and Commonwealth LNG are teaming up with diversified pure useful resource firm Glencore LTD for a strategic pure gasoline and liquefied pure gasoline (LNG) partnership.

The three firms have entered right into a heads of phrases settlement, Kimmeridge mentioned in a information launch. Underneath the phrases of the settlement, Glencore will buy 2 million metric tons every year (mtpa) of LNG for 20 years from Commonwealth, in addition to equal pure gasoline provide from KTG underneath a netback settlement at worldwide costs.

The settlement accelerates KTG’s goal of changing into a “absolutely built-in supplier of pure gasoline from wellhead to water,” Kimmeridge remarked.

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The definitive agreements are anticipated to be finalized between the events within the fourth quarter.

Commonwealth anticipates a last funding determination on its LNG export facility in Cameron, Louisiana, within the first half of subsequent yr, whereas first LNG manufacturing is predicted in 2028, in response to the discharge.

KTG CEO and President David Lawler mentioned, “Our partnership with Glencore represents one other tangible step ahead for the KTG platform in changing into a totally built-in supplier of dependable, safe and clear power from wellhead to water. With Commonwealth by our facet, we sit up for reaching vital worldwide markets in partnership with Glencore, who shares our imaginative and prescient of accountable LNG manufacturing and utilization”.

Glencore International Head of LNG, Gasoline and Energy Maxim Kolupaev mentioned, “We’re excited to accomplice with Kimmeridge Texas Gasoline and Commonwealth, two main firms within the pure gasoline house, underneath a novel framework that leverages Glencore’s premier LNG advertising and marketing platform and funding grade credit standing to facilitate entry to worldwide pricing. This settlement is the results of a powerful relationship between Glencore and Kimmeridge, constructing upon our widespread imaginative and prescient of serving to economies speed up their power transition ambitions”.

Kimmeridge Texas Gasoline mentioned it’s a producer of pure gasoline dedicated to accelerating carbon neutrality by growing environmentally accountable, low-cost power property. With roughly 148,000 web acres in Texas overlaying the dry gasoline window of the Eagle Ford Shale inside Webb, La Salle, McMullen and Karnes counties, the corporate produces roughly 400 million cubic toes equal of pure gasoline and oil per day, promoting into the South Texas market with entry to Mexican export channels, to LNG terminals for world gross sales, and into pipelines immediately servicing Gulf Coast petrochemical amenities, in response to the discharge.

Commonwealth LNG is a 9.5 mtpa LNG export terminal challenge positioned on the Calcasieu River on the Gulf of Mexico close to Cameron, Louisiana.

In June, Kimmeridge took management of Commonwealth LNG and named ex-BP America Chair and President David Lawler as chief govt of KTG. Kimmeridge raised its fairness possession within the challenge to over 90 p.c after an acquisition from Commonwealth LNG founder and govt chair Paul Varello.

Glencore describes itself as one of many world’s largest world diversified pure useful resource firms and a serious producer and marketer of greater than 60 responsibly sourced commodities that advance on a regular basis life. The group’s operations comprise round 150 mining and metallurgical websites and oil manufacturing property. Its prospects are industrial shoppers, akin to these within the automotive, metal, energy technology, battery manufacturing and oil sectors. Glencore additionally offers financing, logistics and different providers to producers and shoppers of commodities.

To contact the writer, e mail rocky.teodoro@rigzone.com