Commonwealth LNG, JERA Reached 20-Year Sale and Purchase Agreement

SEATTLE (Oil Monster): Commonwealth LNG announced that it has entered into a 20-year Sale and Purchase Agreement (SPA) with leading Japanese power generation company JERA. Under the terms of the agreement, JERA will purchase 1 Mtpa of liquefied natural gas (LNG) from Commonwealth’s LNG export facility in Cameron, Louisiana.

The agreement highlights Commonwealth’s commitment to delivering low-cost energy to global energy buyers. The strategic partnership with JERA validates Commonwealth’s project. With the signing of the SPA with JERA, Commonwealth LNG now has long-term offtake agreement totalling 4 Mtpa. The company targets to make a final investment decision (FID) in Q3 thus year, with first LNG production scheduled for 2029.

Bell Dell, Chairman, Commonwealth LNG, in a statement, said that the company looks forward to its partnership with JERA, especially considering their extensive experience along the full LNG value chain.

The Louisiana LNG export facility is expected to generate approximately $3.5 billion in export revenue per annum. During the peak of construction, it promises to create around 2,000 jobs. Once operational, it will sustain nearly 275 permanent jobs, thus contributing significantly to the economic stability and growth of the region.