$11 billion US LNG project in Louisiana bags final FERC approval ahead of FID

Kimmeridge SoTex Holdco (SoTex), an affiliate of the energy-focused alternative investment manager Kimmeridge, has confirmed the receipt of a final order from the Federal Energy Regulatory Commission (FERC), upholding authorization for a liquefied natural gas (LNG) export terminal currently under development on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico/America near Cameron Parish in Louisiana, United States.

The company claims that FERC’s approval, which it describes as a key regulatory milestone, sets the scene for a final investment decision (FID) to be taken for its 9.5 million tonnes per annum (mtpa) Commonwealth LNG export project in Q3 2025.

Before a conditional non-free trade agreement export authorization from the United State Department of Energy is in place, the firm anticipates its first LNG production in 2029. This project is said to be pioneering an integrated wellhead-to-water strategy in partnership with its upstream operating entity to deliver low-cost, low-emission gas to the global market.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth, commented: “We are pleased to have received this final order from FERC and we thank the regulatory body for their diligent and thorough analysis.

“This milestone further paves the way for development of a state-of-the-art LNG export facility that strengthens energy security domestically and for our allies, all while prioritizing environmental stewardship and providing sustained economic benefit for local communities.”

Commonwealth LNG’s phase 1 development, which is forecast to bring an investment of more than $11 billion to Louisiana, is expected to generate an estimated $3.5 billion in annual export revenue. While the project is anticipated to employ approximately 2,000 workers at the peak of construction, it will provide around 275 high-paying jobs when the facility begins operations in late 2029.

Furthermore, the Commonwealth LNG project is proceeding with significant momentum thanks to recently announced long-term LNG offtake agreements with top-tier global purchasers, including Glencore, JERA, and Petronas, and line of sight toward finalizing its commercial book in the near term.

Mubadala Energy joined the project in April 2025, when it acquired a 24.1% interest in Kimmeridge’s SoTex HoldCo, holder of two portfolio companies: Commonwealth LNG and Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford in South Texas.

Farhad Ahrabi, Commonwealth President and CEO, remarked: “Receiving the FERC final order is a tribute to the persistence and outstanding execution of our team. We likewise greatly appreciate the community support we received in Cameron and the surrounding area.

“We look forward to realizing the benefits that this facility will bring for all who have contributed to making it happen.”