Commonwealth LNG, a proposed liquefied natural gas (LNG) export facility in Cameron, Louisiana, has received a conditional non-free trade agreement (non-FTA) export authorisation from the US Department of Energy (DOE).
Separately, the project has also obtained a draft Supplemental Environmental Impact Statement (SEIS) from the Federal Energy Regulatory Commission (FERC). These regulatory developments advance its plan to develop the 9.5 million tonnes per annum (Mtpa) LNG export terminal in Cameron Parish.
The DOE’s conditional order permits Commonwealth LNG to export LNG to non-FTA countries. The department stated that the project is expected to generate economic benefits for the US, expand global LNG supply, and improve energy security for US allies and trading partners.
A final ruling on the export authorisation is anticipated later in the year.
US Secretary of Energy Chris Wright said: “President Trump has outlined a bold agenda for unleashing American energy dominance, and restoring regular order on US LNG export permits is critical for meeting this commitment to the American people.
“Today marks one of many steps that DOE will be taking to assure our future as a reliable energy supplier to the world and resume regular order to our regulatory responsibilities over natural gas exports.”
Commonwealth LNG has set a final investment decision (FID) target in September 2025, with LNG production scheduled to begin in Q1 2029.
The facility is planned for the west bank of the Calcasieu Ship Channel, near the Gulf of America. It will include five LNG storage tanks, each with a capacity of 50,000m3, and will accommodate vessels of up to 216,000m3. A 4.8km pipeline will connect the terminal to two major pipeline systems with existing excess transportation capacity.
The project is employing a modular construction approach designed to improve cost control and scheduling certainty.
In Q4 2022, the project received full FERC approval. It completed front-end engineering and design (FEED) with Technip Energies in Q2 2023.
In August 2023, Commonwealth LNG secured development capital from private funds managed by Kimmeridge Energy Management, an alternative asset management firm focused on the energy sector. The funding will support the project through FID and early construction stages.
Commonwealth LNG chairman and Kimmeridge Energy Management managing partner Ben Dell said: “The Commonwealth export facility is expected to unlock approximately $11bn in investments in Louisiana and an estimated $3.5bn in annual export revenue, unleashing American energy, utilising approximately 2,000 workers at the peak of construction and providing 270 high-paying jobs when the facility begins operations.”
