Commonwealth LNG Holds Offtake Tender
Commonwealth LNG has partnered with commodities trader Gunvor to invite bids for offtake from its planned 8.4mn metric ton/year facility in Cameron, Louisiana, it said on January 19.
The Houston-based company said it marked the first tender in which potential LNG customers could book future term supply at volumes, pricing and durations of their choosing via competitive bidding. LNG will be available under tolling, free on board, or delivered at place (DAP) offtake contracts to meet customer preferences.
"We believe this process offers a mutually advantageous, low-risk solution for buyers to address their long-term needs while allowing Commonwealth to advance our project expeditiously to meet market demand," Commonwealth CEO Paul Varello said in a statement.
Besides supporting the tender, Gunvor has also committed to take up to 3mn metric tons/year of LNG from the Cameron facility. The trader will also enable supplies on a DAP basis, and its LNG supply portfolio will ensure buyers still get the gas they order if the Cameron project does not materialise, or allow them to receive deliveries prior to the facility's start-up.
"The flexibility Gunvor can offer both in terms of early bridging volumes and firm DES/DAP contracts differentiates Commonwealth from other developing LNG projects," Gunvor's co-head of LNG trading, Kalpesh Patel, commented.
Poten & Partners is handling the tender, which was launched on January 18. Confirmations of interest must be received by mid-February and bids submitted by early April. Contracts will be awarded by June.
Commonwealth is targeting a final investment decision at the Cameron facility in the first quarter of 2022, with first gas expected in the second quarter of 2025.