Sept 19 (Askume) – Commodity giant Glencore (GLEN.L) signed a non-binding deal to buy 2 million tonnes of liquefied natural gas per year from Commonwealth LNG and the same amount from Kimmeridge Texas LNG.
The 20-year supply agreement between the parties is expected to be finalized in the fourth quarter.
In June, private equity firm Kimmeridge, through its subsidiary KTG, increased its stake in Commonwealth LNG to over 90%.
The US LNG market is booming, with the country now overtaking Qatar as the world’s biggest exporter, as new technology helps shale oil producers develop vast reserves and gives Europe access to Russian energy. Buyer provides energy.
Glencore has done it beforeOther U.S. energy companies such as Marathon Petroleum Corp (MRON.N) and Cheniere Energy (LNG.N) have signed LNG deals as part of their strategies to expand LNG market share .
Commonwealth plans to seek approval for its LNG export facility in Cameron, Louisiana, in the first half of 2025, with commercial operations expected to begin in 2028. However, environmental groups sued claiming the issue had not been adequately addressed, and in July a US court ordered federal regulators to reevaluate the program’s greenhouse gas emissions impacts .
