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Released June 20, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A final investment decision on the Commonwealth LNG export facility in Louisiana is expected by the third quarter, with initial production planned for 2029, the developer said.
Commonwealth will be a liquefaction and export facility for liquefied natural gas (LNG) on the Calcasieu ship channel in Louisiana. The facility will have modular storage tanks and be able to accommodate vessels as large as 7.6 million square feet.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.
On Wednesday, the Federal Energy Regulatory Commission (FERC) signed off on the project, clearing the way for development. It already has the permits necessary to deliver cargo to countries that don't have a U.S. free-trade agreement.
"This milestone further paves the way for development of a state-of-the-art LNG export facility that strengthens energy security domestically and for our allies, all while prioritizing environmental stewardship and providing sustained economic benefit for local communities," said Ben Dell, the chairman of Commonwealth LNG.
Commonwealth, a Kimmeridge (New York, New York) company, in May signed a 20-year sale and purchase agreement to deliver about 132 million cubic feet of gas in the liquid form per day from a facility that will have a nameplate capacity of 1.3 billion cubic feet per day (Bcf/d).
The undisclosed Asian buyer, Commonwealth said, is currently one of the largest global suppliers of LNG. Elsewhere, Mubadala Energy, which has headquarters in Abu Dhabi, is a party to the project after taking on a 24.1% interest in a Kimmeridge subsidiary early this year.
Since his return to the White House, President Donald Trump has prioritized fossil fuel projects such as LNG export facilities, arguing the country is vulnerable to foreign suppliers. The U.S. already is the world leader in LNG exports, delivering about 15 Bcf/d on average.
A report from IIR Energy found that domestic natural gas production is rebounding after a period of regular maintenance curtailed some volumes. Maria Sanchez, a senior energy analyst at IIR Energy, said recent patterns indeed point to a recovery.
The same can't be said for export volumes, however, presumably due to a lag in maintenance. The Sabine Pass terminal, Cheniere Energy's (Houston, Texas) flagship facility, is still impacted by maintenance at a compressor station.
As such, the amount of feedgas running to the eight operational LNG export terminals is below average at about 14 Bcf/d. Total natural gas production from the Lower 48 states is expected to increase 2.5% from year-ago levels, though forecasts point only to a 0.5% by next year.
The International Energy Agency estimates that global LNG export capacity grew at annual pace of about 1,700 cubic feet per year between 2019 and June, double the average rate between 2014 and 2018.
LNG offers more flexibility in terms of delivery than piped gas, supporting energy security in places such as Europe, where geopolitical issues with former supplier Russia left a considerable market void. Regulations from the U.N.-backed International Maritime Organization on fuels could see shippers turn to LNG as a cleaner and lower-volume alternative.
Prices may be supportive of further development. Henry Hub, the U.S. benchmark for the price of natural gas, averaged $2.20 per million British thermal units (mmBtu) last year. Supported by the drain on domestic supplies from LNG exports, Henry Hub could be flirting with $5 per mmBtu next year, according to federal estimates.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Commonwealth will be a liquefaction and export facility for liquefied natural gas (LNG) on the Calcasieu ship channel in Louisiana. The facility will have modular storage tanks and be able to accommodate vessels as large as 7.6 million square feet.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.
On Wednesday, the Federal Energy Regulatory Commission (FERC) signed off on the project, clearing the way for development. It already has the permits necessary to deliver cargo to countries that don't have a U.S. free-trade agreement.
"This milestone further paves the way for development of a state-of-the-art LNG export facility that strengthens energy security domestically and for our allies, all while prioritizing environmental stewardship and providing sustained economic benefit for local communities," said Ben Dell, the chairman of Commonwealth LNG.
Commonwealth, a Kimmeridge (New York, New York) company, in May signed a 20-year sale and purchase agreement to deliver about 132 million cubic feet of gas in the liquid form per day from a facility that will have a nameplate capacity of 1.3 billion cubic feet per day (Bcf/d).
The undisclosed Asian buyer, Commonwealth said, is currently one of the largest global suppliers of LNG. Elsewhere, Mubadala Energy, which has headquarters in Abu Dhabi, is a party to the project after taking on a 24.1% interest in a Kimmeridge subsidiary early this year.
Since his return to the White House, President Donald Trump has prioritized fossil fuel projects such as LNG export facilities, arguing the country is vulnerable to foreign suppliers. The U.S. already is the world leader in LNG exports, delivering about 15 Bcf/d on average.
A report from IIR Energy found that domestic natural gas production is rebounding after a period of regular maintenance curtailed some volumes. Maria Sanchez, a senior energy analyst at IIR Energy, said recent patterns indeed point to a recovery.
The same can't be said for export volumes, however, presumably due to a lag in maintenance. The Sabine Pass terminal, Cheniere Energy's (Houston, Texas) flagship facility, is still impacted by maintenance at a compressor station.
As such, the amount of feedgas running to the eight operational LNG export terminals is below average at about 14 Bcf/d. Total natural gas production from the Lower 48 states is expected to increase 2.5% from year-ago levels, though forecasts point only to a 0.5% by next year.
The International Energy Agency estimates that global LNG export capacity grew at annual pace of about 1,700 cubic feet per year between 2019 and June, double the average rate between 2014 and 2018.
LNG offers more flexibility in terms of delivery than piped gas, supporting energy security in places such as Europe, where geopolitical issues with former supplier Russia left a considerable market void. Regulations from the U.N.-backed International Maritime Organization on fuels could see shippers turn to LNG as a cleaner and lower-volume alternative.
Prices may be supportive of further development. Henry Hub, the U.S. benchmark for the price of natural gas, averaged $2.20 per million British thermal units (mmBtu) last year. Supported by the drain on domestic supplies from LNG exports, Henry Hub could be flirting with $5 per mmBtu next year, according to federal estimates.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
