Glencore inks 20-year non-binding deal with Commonwealth LNG, Kimmeridge

Legend Power Systems

19/09/2024 15:34

Sept 19 (Reuters) - Commodities giant Glencore  GLEN.L 
has signed a non-binding agreement to buy 2 million tonnes per
annum of liquefied natural gas from Commonwealth LNG along with
equivalent natural gas supply from Kimmeridge Texas Gas, the
companies said on Thursday. 
        The 20-year supply agreement is expected to be finalized
among all parties by the fourth quarter.
  
        In June, private equity firm Kimmeridge increased its
stake in Commonwealth LNG to over 90% through its unit KTG.
  
    The U.S. LNG market is experiencing a boom, with the country
surpassing Qatar as the world's top exporter, as new technology
allows shale producers to tap massive reserves and help wean
Europe off Russian gas while providing Asian buyers with a
greener alternative for power generation.
        Glencore has previously signed LNG deals with other U.S.
energy firms, including 
    Marathon Oil
      MRO.N  and 
    Cheniere
     Energy  LNG.N , as part of its strategy to expand its
presence in the 
    LNG market
    .
  
    Commonwealth plans to green light its LNG export facility in
Cameron, Louisiana, by the first half of 2025, with commercial
operations expected to begin in 2028.
    However, a U.S. court ordered federal regulators in July to
reassess the impact of greenhouse gas emissions from the project
after environmental groups filed a lawsuit claiming the issue
was not adequately addressed.
    

 (Reporting by Pooja Menon in Bengaluru; Editing by Tasim Zahid)
 ((Pooja.Menon@thomsonreuters.com;))