Caturus, a U.S.-based energy company, has authorized the construction of a large-scale liquified natural gas (LNG) export terminal in Cameron Parish, Louisiana, after completing $9.75 billion of project financing, Mubadala Energy said on Friday.
The project, known as the Commonwealth LNG facility, is planned to produce 9.5 million metric tons per annum (mtpa) of LNG. Mubadala Energy - the energy arm of an Abu Dhabi sovereign wealth fund - holds a 24.1% stake in Caturus and participated as an equity investor in the funding package.
Other financing participants included energy investor Kimmeridge and Canada Pension Plan Investment Board (CPP Investments). CPP Investments provided $1.2 billion toward the project and, as part of its involvement, raised its stake in Caturus to 31%.
Caturus said it has locked in long-term supply agreements with a group of commodity and energy firms: EQT LNG Trading, Glencore, Mercuria, Malaysia's Petronas, and Aramco Trading, the trading arm of Saudi Aramco. Mubadala Energy's statement also noted an operations target of 2030 for the export plant.
Once operational, the Commonwealth LNG facility is expected to deliver roughly $3 billion in annual export revenue, according to information in the financing announcement. The United States is currently the world's largest LNG exporter and has been a significant supplier to Asia amid supply disruptions linked to the conflict in the Middle East.
The statement referenced elevated global LNG prices and said about 20% of global supply has been taken offline by the Iran war, a factor that has shaped market conditions for exporters and buyers alike.
Project overview
- Facility: Commonwealth LNG export terminal in Cameron Parish, Louisiana.
- Capacity: 9.5 million metric tons per annum.
- Financing: $9.75 billion raised; Mubadala Energy, Kimmeridge, and CPP Investments among investors.
- Ownership changes: Mubadala Energy holds 24.1% of Caturus; CPP Investments increased its holding to 31% after a $1.2 billion contribution.
- Supply partners: EQT LNG Trading, Glencore, Mercuria, Petronas, and Aramco Trading.
- Target start of operations: 2030.
Market context
The financing and contracts for Commonwealth LNG come as U.S. LNG exporters play a central role in meeting Asian demand. The financing announcement cites elevated global LNG prices and notes a material reduction in supply - about 20% taken offline because of the Iran war - as influencing current market dynamics.
Summary of financial expectations
The project is projected to generate about $3 billion of export revenue annually once it reaches operations, based on the disclosures accompanying the financing announcement.