Commonwealth LNG said on Tuesday it has signed a 20-year sale and purchase agreement to supply 1 million tons per annum of liquefied natural gas to Mercuria.
Under the deal, Mercuria will provide 1 million tons of natural gas per year to Commonwealth, and Commonwealth will convert it into LNG for Mercuria to purchase.
Commonwealth has been attempting to build the U.S.’s first integrated LNG export facility, where its major shareholder Kimmeridge will supply gas from its Eagle Ford shale production to the plant.
The U.S. has been working to cement its position as the world’s biggest exporter of LNG, surpassing previous leaders Qatar and Australia.
Last year, President Donald Trump lifted a pause on new LNG export permits, which the previous administration imposed in 2024 to review public interest criteria, shortly after assuming office.
Commonwealth has secured long-term agreements to sell 7 million tons per year of LNG from its permitted 9.5 million-ton capacity, with commitments from major energy companies including Glencore, Japan’s biggest power generator JERA, Malaysia’s Petronas, EQT, and now Mercuria.
(Reporting by Pranav Mathur in Bengaluru; Editing by Tasim Zahid)