Mubadala Energy Invests in $9.75B LNG Export Project in the US

Mubadala Energy has revealed that Caturus LLC has made a significant Final Investment Decision (FID) for the Commonwealth LNG project in the United States. This landmark decision includes the successful conclusion of $9.75 billion in financing for the construction of a liquefied natural gas (LNG) export facility in Cameron Parish, Louisiana, capable of producing 9.5 million tonnes per annum (Mtpa).

The FID marks the official initiation of large-scale construction of what is deemed one of the most economically viable LNG projects in the U.S. The endeavor has garnered substantial interest from both equity and debt financiers, amassing total financial commitments of $21.25 billion.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth LNG, expressed that this achievement represents years of meticulous planning and a strong commitment to establishing a comprehensive “wellhead-to-water” LNG business.

Currently, the project has secured long-term LNG supply contracts with prominent global firms such as EQT, Glencore, Mercuria, PETRONAS, and Aramco Trading.

Phase 1 of the initiative is anticipated to generate over $3 billion in yearly export revenue, with operations expected to commence in 2030.

Mubadala Energy holds a 24.1 percent interest in the Caturus platform, encompassing Commonwealth LNG and upstream natural gas operations. The company is also engaged as an equity investor in the project’s financing.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, noted that the FID is a pivotal step for Commonwealth LNG and aligns with the company’s integrated gas strategy.

He further mentioned that this investment bolsters Mubadala Energy's objectives for international expansion and fortifies its position within the global gas value chain.

The Canada Pension Plan Investment Board (CPP Investments) will inject an additional $1.2 billion into the project, raising its total stake in the Caturus platform to 31 percent, including prior investments.

Bill Rogers, Managing Director and Head of Sustainable Energies at CPP Investments, highlighted Caturus’ unique integrated methodology in encompassing natural gas production and LNG exports, positioning the platform to meet long-term energy reliability and market needs.

Other prominent financial contributors to the project include EOC Partners, funds managed by BlackRock, and an Ares Infrastructure Opportunities fund.

Caturus has authorized Technip Energies, its engineering, procurement, and construction (EPC) partner for the Commonwealth LNG project, to commence ordering major equipment for the facility. The venture aims to utilize modular construction techniques to enhance safety and operational efficiency.

The LNG facility is set to incorporate six mixed-refrigerant compressors from Baker Hughes, powered by LM9000 gas turbines, alongside six Honeywell main cryogenic heat exchangers and four Titan 350 gas turbine-generators from Solar Turbines. The terminal will also have the capacity to load LNG carriers with up to 216,000 cubic meters.

Caturus CEO David Lawler stated that global gas demand is on a swift upward trajectory, and the firm aims to position itself as a leading integrated natural gas producer and LNG exporter in the United States.

In preparation for the Commonwealth LNG FID, Caturus enhanced its upstream assets by acquiring Galvan Ranch natural gas properties from SM Energy. The company now produces more than 1 billion cubic feet equivalent of natural gas daily on a net basis, ranking among the top 10 private natural gas producers in the U.S.