KUALA LUMPUR, Jan 19 -- Commonwealth LNG, in association with Gunvor Group (Gunvor), has announced the launch of a formal process to solicit bids to reserve offtake from its planned 8.4 million tons per annum (MTPA) LNG facility in Cameron, Louisiana.
According to a statement, it is the first ever tender process in which prospective LNG customers can secure future term supply at volumes, pricing and durations of their choosing through competitive bidding.
LNG will be made available under tolling, free on board (FOB) or delivered at place (DAP) offtake agreements to match customer preferences.
Commonwealth’s tender is supported by Gunvor Group Ltd. Gunvor and Commonwealth LNG have a strategic agreement under which Gunvor supports Commonwealth in securing binding LNG offtake and gas supply agreements for the facility.
Gunvor has committed to take up to 3 MTPA of LNG offtake from the project. In addition, as part of the tender, Gunvor will enable the offering of DAP basis to customers desiring this option.
Commonwealth has retained Poten & Partners Inc to manage the tender process. The tender process was launched Jan 18. It calls for confirmations of interest by mid-February and submission of bids by early April 2021.
Commonwealth will evaluate each bid based on the bidder’s requested volume, price, contract tenor and credit. Contracts are due to be awarded by this June.
The company is implementing an accelerated construction schedule that will allow the project to be built in three years using a predominantly modular approach with major components being fabricated offsite, enabling the project to offer one of the most competitive LNG sales prices from the United States.
-- BERNAMA
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