Mubadala Energy, the international energy company based in Abu Dhabi, has announced that its key platform - Caturus - has made a positive final investment decision for its Commonwealth LNG project that includes successful closing of $9.75 billion in project financing for construction of the 9.5 million tonnes per annum (Mtpa) liquefied natural gas (LNG) export facility in Louisiana, US.
The FID marks the start of full construction and advances one of the most cost‑competitive and efficient LNG projects in the United States. The transaction garnered strong interest from both equity and debt investors, resulting in total commitments of $21.25 billion.
"This landmark occasion, in parallel with continued growth of Caturus’ upstream platform, is the culmination of years of strategic planning, strong partnerships and commitment to delivering a fully integrated ‘wellhead-to-water’ project," said Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth LNG.
Long‑term offtake agreements have been secured with a diversified group of global energy and industrial counterparties, including EQT, Glencore, Mercuria, Petronas, and Aramco Trading. Phase 1 development is expected to generate more than $3 billion in annual export revenue when operations commence in 2030.
Mubadala Energy, which already holds a 24.1% stake in the Caturus platform comprised of Commonwealth LNG and Caturus’ upstream operations, is also an equity participant in the project’s financing.
Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, said: “This FID announcement is a major milestone for Commonwealth LNG and is a critical step in realizing its strategy for a fully integrated ‘wellhead-to-water’ operation. For Mubadala Energy, we have been delighted to play an active role in helping achieve this vision while building further momentum to our international growth strategy."
"The investment adds to our existing global gas-weighted portfolio and expands our exposure across the full gas value chain – an important driver of our longstanding growth plans," he stated.
According to Mubadala, the Canada Pension Plan Investment Board (CPP Investments) will contribute $1.2 billion in financing to increase its total stake in the Caturus platform to 31%, including previous investments.
Bill Rogers, Managing Director, Head of Sustainable Energies, CPP Investments, said: “Caturus stands out for its integrated approach across natural gas production and LNG export, and the platform is well placed to support energy reliability and resilience in its core markets over time. "
"This increased investment in Caturus alongside our partners represents a compelling opportunity to extend our commitment to a differentiated energy platform in pursuit of delivering long-term value for the CPP Fund,” said Rogers.
In addition, major financial partners in the project include EOC Partners, funds and accounts managed by BlackRock, and an Ares Infrastructure Opportunities fund.
Caturus previously authorised Technip Energies, Commonwealth LNG's EPC partner, to order major long-lead equipment for the facility. The partnership will leverage Technip Energies’ global LNG expertise and a modular approach to improve safety and efficiency across the site.
The facility will include 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 Commonwealth LNG project will also be capable of loading LNG carriers up to 216,000 cu m.
Caturus CEO David Lawler said: "Global gas demand is unquestionably accelerating and Caturus is positioned to be a differentiated leader across the value chain from upstream production to LNG export."
"In partnership with our best-in-class team, blue chip investors and Kimmeridge, Caturus will continue to exemplify the value of being the nation’s leading independent and integrated natural gas company," he stated.
In the weeks leading up to the Commonwealth FID, Caturus significantly expanded its upstream holdings with the acquisition of Galvan Ranch natural gas assets from SM Energy.
Caturus is now producing more than 1 billion cu ft equivalent per day on a net basis and ranks among the top 10 private US natural gas pure-play producers.-TradeArabia News Service
