Kimmeridge Texas Gas (KTG) and Commonwealth LNG (Commonwealth) have announced a strategic partnership with Glencore LTD, a global leader in natural resources, to solidify their position in the natural gas and LNG market. This alliance marks a significant step forward for all involved, particularly KTG, in its goal of becoming a fully integrated energy provider, delivering reliable and clean energy from wellhead to water.
The agreement involves Glencore purchasing 2 million tonnes per annum of LNG for 20 years from Commonwealth. In addition, Glencore will procure equivalent natural gas supply from KTG under a netback agreement, which allows for international pricing. The definitive agreements are expected to be finalized by the end of 2024.
Commonwealth’s LNG export facility, located in Cameron, Louisiana, is anticipated to achieve a final investment decision in the first half of 2025, with initial LNG production targeted for 2028. The facility boasts a capacity of 9.5 mtpa (million tonnes per annum), making it a significant player in the global LNG market.
David Lawler, CEO and President of KTG, expressed enthusiasm about the partnership, stating that it represents a significant step in KTG’s journey towards becoming a fully integrated energy provider. Lawler highlighted their shared vision with Glencore for responsible LNG production and usage, enabling them to access critical international markets.
Maxim Kolupaev, Glencore’s Global Head of LNG, Gas and Power, echoed Lawler’s sentiments, emphasizing the innovative nature of the partnership. He highlighted the benefits of leveraging Glencore’s extensive LNG marketing platform and investment-grade credit rating to facilitate access to international pricing. This agreement, born from a longstanding relationship between Glencore and Kimmeridge, reflects their shared commitment to helping economies progress their energy transition ambitions.
About Kimmeridge Texas Gas
Kimmeridge Texas Gas is a leading producer of natural gas, committed to accelerating carbon neutrality by developing environmentally responsible, low-cost energy assets. With approximately 148,000 net acres in Texas, primarily within the Eagle Ford Shale, the company produces approximately 400 million cubic feet equivalent of natural gas and oil per day. Their production serves the South Texas market, with access to Mexican export channels, LNG terminals for global sales, and pipelines supplying Gulf Coast petrochemical facilities.
About Commonwealth LNG
Commonwealth LNG’s 9.5 mtpa liquefied natural gas (LNG) export terminal project is strategically located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana. The project leadership is dedicated to constructing a world-class LNG facility by prioritizing risk management and cost optimization.
About Glencore LTD
Glencore, a globally diversified natural resource company, is a major producer and marketer of over 60 responsibly sourced commodities. Their operations span approximately 150 mining and metallurgical sites and oil production assets. With a strong presence in over 35 countries, Glencore’s industrial activities are supported by a global network of over 30 marketing offices. Their customer base comprises industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing, and oil sectors. Glencore further provides financing, logistics, and other services to producers and consumers of commodities. Glencore employs around 135,000 people worldwide, including contractors. They are committed to ethical practices, participating in the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. Glencore is an active member of the Extractive Industries Transparency Initiative and aims to achieve net zero total emissions by 2050.
