Caturus is moving forward with Commonwealth LNG, the latest export project to be sanctioned in a bullish environment for US LNG. The developer has also addressed a feedgas problem flagged by East Daley Analytics, reaching an agreement with WhiteWater to build a new pipeline to the 9.5 Mtpa facility in Cameron Parish, LA.
Caturus on May 15 announced a final investment decision (FID) on Commonwealth after closing $9.75B in project financing. The project has a total estimated cost of $13B. Caturus is targeting the start of operations in 2030; East Daley forecasts Commonwealth will be fully operational by 1Q31.
The project has secured long-term offtake agreements with EQT, Glencore, Mercuria, PETRONAS, and Aramco Trading. Separately, Caturus closed its acquisition of SM Energy’s (SM) Galvan Ranch acreage in South Texas, pushing the company’s total gas production over 1 Bcfe/d net.
The FID closes the question of whether Commonwealth would advance. The next question is how 9.5 Mtpa (~1.3 Bcf/d) of feedgas would reach Cameron Parish in 2030 without a dedicated header system (see map above). East Daley previously highlighted this constraint on the Commonwealth project, given it lacked any associated pipeline expansion while competition is growing for supply at the Gillis hub in southwestern Louisiana.
Caturus has solved its missing midstream link through a new deal with WhiteWater. The Austin-based company announced Thursday (May 28) that it will extend its Pelican Pipeline in Louisiana to deliver gas to the Commonwealth facility.
The new greenfield project, the Pelican Thrasher lateral, will include 65 miles of 42-inch pipe originating from Gillis. WhiteWater expects the new lateral will begin service in 1H29 and be capable of transporting up to 2.5 Bcf/d.
The sanctioning of Commonwealth confirms fresh momentum behind US LNG projects. QatarEnergy, a chief competitor on the global LNG market, has sustained damage from a drone strike by Iran on its Ras Laffan LNG complex, pushing global gas prices higher. Meanwhile, Henry Hub prices have held steady or even declined during the three-month Iran conflict, widening the arbitrage window for US exporters.
East Daley’s ‘LNG Tracker’ dashboard in Energy Data Studio puts US liquefaction capacity near 40 Bcf/d by 2032. In our view, the projects best positioned to capture incremental upside to this forecast are brownfield expansions at Cheniere Energy’s (LNG) Sabine Pass via the Texas Access project on Kinder Morgan Louisiana Pipeline, and NextDecade’s (NEXT) Rio Grande via Bay Runner and Rio Bravo Pipeline.
See East Daley Analytics’ ArkLaTex and Houston Ship Channel reports for more on the Gulf Coast LNG outlook. – Oren Pilant Tickers: EQT, LNG, NEXT, SM.
Download Part II of East Daley’s Permian Basin White Paper Series
The Permian Basin’s next big buildout is already taking shape, but this time the driver isn’t crude oil. In The Permian Basin at a Crossroads: Why This Pipeline Boom is Different, East Daley Analytics’ latest white paper reveals how gas demand from AI data centers, utilities and LNG exports is rewriting the midstream playbook in the leading US basin. Over 10 Bcf/d of new capacity and $12 billion in investments are reshaping flows, turning the Permian into a gas powerhouse even as rigs decline. Read Part II: Why This Pipeline Boom is Different
The Daley Note
Subscribe to The Daley Note for energy insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.