Commonwealth LNG Reaches Final Investment Decision

Caturus, the natural gas arm of private equity firm Kimmeridge, has announced a $9.75 billion final investment decision (FID) for the Commonwealth LNG project in Louisiana. The terminal, located in Cameron Parish near Venture Global's Calcasieu Pass facility, will export up to 9.5 million tonnes per annum of LNG. Construction has officially begun, with Technip Energies receiving a full notice to proceed as the engineering, procurement, and construction (EPC) contractor.

Financial Commitments and Revenue Projections

The project has secured $21.25 billion in total commitments through equity and debt. Caturus expects the first phase to generate $3 billion in annual revenue when operations begin in 2030. Major financial partners include EOC Partners, BlackRock, and Ares Infrastructure Opportunities. Canada Pension Plan Investment Board (CPP Investments) has increased its stake in Caturus to 31% after financing a $1.2 billion portion of the project. Mubadala Energy of the United Arab Emirates holds a 24.1% stake in Caturus.

Offtake Agreements and Upstream Expansion

Long-term offtake agreements are in place with EQT, Glencore, Mercuria, Petronas, and Saudi Aramco’s trading arm, finalized in April. Leading up to the FID, Caturus expanded its upstream portfolio by purchasing the Galvan Ranch natural gas assets from SM Energy, now producing over 1 billion cubic feet per day of gas. Ben Dell, Kimmeridge’s managing partner and chairman of Commonwealth LNG, described the FID as the culmination of years of strategic planning to deliver a fully integrated "wellhead-to-water" project.

Regulatory and Commercial Milestones

Commonwealth LNG gained commercial momentum following equipment orders in December with Baker Hughes, Honeywell, and Solar Turbines. However, the project faced a regulatory setback in November when its state permit was rejected by a judge, though Louisiana reissued the permit a month later. CPP Investments' Bill Rogers noted that Caturus's integrated approach across natural gas production and LNG export positions it well to support energy reliability in core markets.