September 20, 2024 [Reuters]- Commodities giant Glencore has signed a non-binding agreement to buy 2 million tonnes per annum of liquefied natural gas from Commonwealth LNG along with equivalent natural gas supply from Kimmeridge Texas Gas, the companies said on Thursday.

The 20-year supply agreement is expected to be finalized among all parties by the fourth quarter.

In June, private equity firm Kimmeridge increased its stake in Commonwealth LNG to over 90% through its unit KTG.

The U.S. LNG market is experiencing a boom, with the country surpassing Qatar as the world’s top exporter, as new technology allows shale producers to tap massive reserves and help wean Europe off Russian gas while providing Asian buyers with a greener alternative for power generation.

Glencore has previously signed LNG deals with other U.S. energy firms, including Marathon Oil and Cheniere Energy, as part of its strategy to expand its presence in the LNG market.

Commonwealth plans to green light its LNG export facility in Cameron, Louisiana, by the first half of 2025, with commercial operations expected to begin in 2028. However, a U.S. court ordered federal regulators in July to reassess the impact of greenhouse gas emissions from the project after environmental groups filed a lawsuit claiming the issue was not adequately addressed.

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