Caturus will nearly double export capacity of its Commonwealth LNG project

By Sheila Dang and Curtis Williams

HOUSTON, Sept 15 (Reuters) - U.S.-based Caturus will nearly double the export capacity of its Commonwealth LNG project in Cameron Parish, Louisiana, chief corporate affairs officer Brian Cain said on Tuesday at a G20 ministerial event in Houston.

The expansion will include five new liquefaction units, also known as trains, increasing peak output to 17.25 million metric tons per annum from the initially planned 9.5 mtpa, he said.

The project is the only fully integrated LNG venture in the U.S. that combines natural gas production with LNG processing facilities. Most U.S. LNG export projects operate as standalone infrastructure, purchasing gas from third-party producers, charging liquefaction fees and selling the superchilled gas under long-term contracts with limited exposure to spot markets.

The U.S. is the world's largest LNG exporter, and its supplies have become increasingly important in meeting global demand following disruptions to energy markets caused by Russia's invasion of Ukraine and the ongoing conflict with Iran.

"For customers worldwide, this expansion project we believe is good news because it will provide an additional source of reliable natural gas globally for decades to come," Cain said, adding that Commonwealth LNG will in the coming months focus on securing customer agreements, financing and regulatory approvals for the expansion.

Mubadala Energy, part of an Abu Dhabi sovereign wealth fund, holds a 24.1% stake in Caturus and participated in the project's financing. Energy investor Kimmeridge and the Canada Pension Plan Investment Board also provided funding, with CPP contributing $1.2 billion and increasing its stake in Caturus to 31%.

Caturus approved construction of the LNG facility in May after securing $9.75 billion in financing for the project.

The initial development was expected to cost about $12.5 billion, including financing fees, Chairman Ben Dell said at a groundbreaking ceremony marking the project's final investment decision.

The initial phase of the project has long-term supply agreements with EQT LNG Trading, Glencore, Mercuria, Malaysia's Petronas and Saudi Aramco's trading arm.

The facility is expected to begin exporting LNG in 2030.