Post by : Badri Ariffin

Mubadala Energy has revealed that Caturus LLC has successfully reached a Final Investment Decision (FID) for the Commonwealth LNG project located in the United States. This decision includes securing $9.75 billion in financing aimed at building a liquefied natural gas (LNG) export facility with a capacity of 9.5 million tonnes per annum (Mtpa) in Cameron Parish, Louisiana.

The FID signifies the official start of full-fledged construction of this LNG export terminal, hailed as one of the most economically viable LNG projects in the country. The venture has drawn considerable interest from both equity and debt investors, culminating in total financial obligations of $21.25 billion.

Ben Dell, the Managing Partner at Kimmeridge and Chairman of Commonwealth LNG, remarked that this milestone is the outcome of years of planning, solid partnerships, and a commitment to establishing a fully integrated "wellhead-to-water" LNG enterprise.

The project has secured long-term LNG supply contracts with prominent global players such as EQT, Glencore, Mercuria, PETRONAS, and Aramco Trading.

Once Phase 1 is operational in 2030, it is projected to generate over $3 billion annually in export revenue.

Mubadala Energy holds a 24.1% interest in the Caturus platform, which encompasses both the Commonwealth LNG project and upstream natural gas operations. The firm is actively participating as an equity investor in the financing.

Mansoor Mohamed Al Hamed, the Managing Director and CEO of Mubadala Energy, expressed that the FID marks a crucial achievement for Commonwealth LNG and forms a key part of the company’s integrated gas strategy.

He added that this investment reinforces Mubadala Energy’s strategies for international growth and solidifies its standing within the global gas sector.

The Canada Pension Plan Investment Board (CPP Investments) is investing an additional $1.2 billion into the project, elevating its total stake in the Caturus platform to 31% including prior investments.

Bill Rogers, Managing Director and Head of Sustainable Energies at CPP Investments, noted that Caturus’s integrated model addressing both natural gas production and LNG exports places it in a favorable position to meet long-term energy needs and market demand.

Other significant financiers in this initiative include EOC Partners, various funds managed by BlackRock, and an Ares Infrastructure Opportunities fund.

Caturus has granted Technip Energies, the engineering, procurement, and construction (EPC) partner for Commonwealth LNG, the authorization to commence the procurement of major equipment. The facility will employ modular construction techniques to enhance safety and operational efficiency.

The LNG facility is set to incorporate six Baker Hughes mixed-refrigerant compressors powered by LM9000 gas turbines, six Honeywell main cryogenic heat exchangers, and four Titan 350 gas turbine-generators from Solar Turbines. The terminal will be equipped to load LNG carriers with capacities up to 216,000 cubic meters.

Caturus CEO David Lawler stated that with the growing global demand for gas, the company aspires to emerge as a key player in integrated natural gas production and LNG exporting within the United States.

In anticipation of the Commonwealth LNG FID, Caturus has expanded its upstream portfolio by acquiring Galvan Ranch natural gas assets from SM Energy, now producing over 1 billion cubic feet equivalent of natural gas daily and ranking among the top ten private U.S. natural gas producers.

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