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Caturus to Proceed With 9.5 Mtpa Commonwealth LNG Export Project

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Caturus has made a positive final investment decision for its Commonwealth LNG project which includes the successful closing of $9.75 billion in project financing to build a 9.5 million tonne-per-annum liquefied natural gas export facility in Cameron Parish, Louisiana.

The decision was revealed on Friday by Abu Dhabi-based Mubadala Energy which holds a 24% stake in Caturus.

The full investment decision markets the start of full construction of what will be one of the most cost-competitive LNG projects in the US, Mubadala said. The decision has drawn strong interest from equity and debt investors with total commitments of $21.25 billion.

"This landmark occasion, in parallel with continued growth of Caturus' upstream platform, is the culmination of years of strategic planning, strong partnerships and commitment to delivering a fully integrated 'wellhead-to-water' project," said Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth LNG.

The project has secured long term offtake agreements with a diversified group of global energy and industrial counterparties, including EQT (EQT), Glencore, Mercuria, Petronas, and Aramco Trading, the statement said.

Operations of the project's Phase 1 development are expected to start in 2030, Mubadala's statement said. Mubadala is also an equity participant in the financing of the project, it said.

"This FID announcement is a major milestone for Commonwealth LNG and is a critical step in realizing its strategy for a fully integrated 'wellhead-to-water' operation," said Mubadala CEO Mansoor Mohamed Al Hamed.

Canada Pension Plan Investment Board or CPP Investments will contribute $1.2 billion in financing, increasing its stake in the Caturus platform to 31%, including previous investments.

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