Common wealth LNG to supply LNG to the MET Group underscoring the importance of US in the European Energy
Commonwealth LNG has finalized a Heads of Agreement (HOA) with European energy company MET Group, outlining the supply of one million tonnes per annum of liquefied natural gas (LNG) from its export facility in Cameron, Louisiana. The 20-year contract, set to begin in 2027 alongside the site's commercial operations, underscores the role of US LNG in Europe's energy transition. Paul Varello, Commonwealth LNG’s Founder and Executive Chairman stated that this agreement acknowledges the contribution of US LNG in providing reliable and affordable natural gas to Europe.
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MET Group's increased involvement in the LNG market aligns with this deal. In 2022, the company imported over 30TWh of LNG cargoes to multiple countries, expanding its capacities in Germany and reaching Finland with spot capacity. According to Benjamin Lakatos, MET Group's Chairman and CEO, LNG supply diversification enhances Europe's energy security.
Commonwealth LNG is targeting a final investment decision by early 2024, aiming for initial cargo deliveries in 2027. The project's accelerated construction plan adopts a modular approach, fabricating major components offsite for a three-year completion timeline. The facility will comprise six natural gas liquefaction trains and associated infrastructure capable of producing around 9.3 million tonnes per annum of LNG.
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According to the article by Procurement Resource, in forging a 20-year agreement to supply LNG to MET Group, Commonwealth LNG establishes the significance of US LNG in Europe's energy transition. As MET Group augments its LNG market presence, this partnership bolsters gas supply diversification and European energy security. Commonwealth LNG's accelerated construction plan for its export facility underscores its commitment to providing reliable and affordable natural gas, contributing to a sustainable energy future for Europe.
