Glencore Inks 20-Year LNG Deal with Commonwealth, Kimmeridge

Glencore has signed a 20-year agreement to purchase 2 million tonnes of LNG annually from Commonwealth's Louisiana export terminal, supported by natural gas from Kimmeridge Texas Gas, helping advance the project toward a final investment decision.

(Reuters) — Commodities giant Glencore finalized a deal to buy 2 million tonnes per annum (mtpa) of LNG from Commonwealth's export facility in Louisiana, along with equivalent natural gas supply from Kimmeridge Texas Gas, the companies said on May 13.

The 20-year agreement, which was initially announced last year as non-binding, supports Commonwealth's aim to greenlight its LNG export facility in Cameron, Louisiana in the third quarter of 2025 and its first LNG production in 2029.

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.

"This partnership represents the further growth of our U.S. energy trading business, an area which continues to be a focus for significant investment," said Giles Jones, Glencore's head of U.S. energy.