The Houston (Texas)-based Commonwealth LNG (Commonwealth) has signed a sale and purchase agreement with a major Asian energy company (buyer).

Under the signed agreement, the Asian energy company will purchase 1 million tonnes per annum (mtpa) of LNG for 20 years from Commonwealth’s 9.5 mtpa facility currently under development in Cameron, Louisiana.

The buyer is one of the world’s leading energy corporations, Commonwealth LNG said, adding that the Asian company is operating comprehensively across the oil and gas value chain from upstream to downstream, whilst in the liquefied natural gas (LNG) sector, it is currently one of the largest global suppliers of LNG.

Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth, pointed out that “This offtake agreement marks another important milestone for Commonwealth as we work toward a final investment later this year and first offtake planned for 2029.”

“We look forward to working with this buyer, a longstanding leader in LNG, as we further our integrated wellhead-to-water strategy in delivering LNG to critical markets around the world,” he added.

Farhad Ahrabi, president and CEO of Commonwealth, noted: “We look forward to building and strengthening our partnership with this buyer in mutually beneficial ways as we progress on our journey.”

The deal will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project, as Commonwealth stated.