Commonwealth LNG, based in the United States, has signed a heads of agreement (HoA) with EQT, another U.S. company, for the supply of one million tons per annum (mtpa) of liquefied natural gas (LNG) under a 15-year tolling agreement. The deal also includes associated gas supply to Commonwealth LNG's facility in Cameron, Louisiana.

The terms outlined in the HoA are expected to become effective when the facility begins commercial operations. However, the final terms of the agreement are still subject to negotiations between the two parties for a definitive contract.

Commonwealth LNG's Founder and Executive Chairman, Paul Varello, expressed satisfaction with the addition of EQT, a major U.S. natural gas producer, to the company's customer portfolio. He highlighted that this agreement would link EQT's substantial natural gas assets to Commonwealth's LNG facility, establishing a robust value chain from wellhead to water.

Moreover, Varello mentioned that accessing EQT's natural gas production, which has achieved a 20% year-over-year reduction in scope 1 and scope 2 greenhouse gas emissions, aligns with Commonwealth's goal of attaining top-tier environmental standards.

The LNG project in Louisiana is targeting a final investment decision (FID) in the first quarter of 2024, with the first LNG cargo deliveries expected in 2027. Commonwealth LNG plans to expedite construction by utilizing a modular approach, with major components being fabricated offsite.

This agreement follows Commonwealth LNG's recent HoA with MET Group, a Swiss-based company, for the sale and purchase of one mtpa of LNG over a 20-year period from the Louisiana facility.