HOUSTON, March 10 (Reuters) - Commonwealth LNG has seen
an increase in interest from prospective buyers since it secured
an export license from the administration of U.S. President
Donald Trump last month, the project's owner said on Monday.
The U.S. Department of Energy granted an LNG export license to
the Commonwealth LNG project in Louisiana in February, the first
approval of LNG exports after former President Joe Biden paused
them early last year for environmental review.
"The...approval took a lot of risks off the table for the buyers
and that's something we have been waiting for for over two
years," Ben Dell, Managing Partner of energy management company
Kimmeridge, told Reuters on the sidelines of the CERAWeek energy
conference in Houston.
"And yes, it has brought additional buyers into the market."
Dell did not identify any of the new prospective buyers.
Kimmeridge acquired Commonwealth LNG in June last year.
Commonwealth is developing a 9.5 million metric tons per annum
(MTPA) LNG plant in Cameron, Louisiana.
The project currently has almost 8 million MTPA of its supply
either under contract or under consideration, including 2.5 MTPA
with Woodside Energy ( WDS ) and 2 MTPA that Kimmeridge will
keep for itself to trade.
Dell said the Trump administration's pursuit of tariffs on
imports from some trading partners has created uncertainty
because Commonwealth plans to source some of its construction
materials from abroad.
"Within our budget we have always had a line item for
tariffs so really it is about understanding where we want to
source our product from versus changing anything material in the
project," Dell told Reuters.