Mubadala Energy has announced that Caturus LLC has taken a positive Final Investment Decision (FID) for the Commonwealth LNG project in the United States. The decision includes the successful closing of $9.75 billion in project financing for the construction of a 9.5 million tonnes per annum (Mtpa) liquefied natural gas (LNG) export facility in Cameron Parish, Louisiana.

The FID officially marks the beginning of full-scale construction of the LNG export terminal, which is considered one of the most cost-efficient LNG projects in the US. The project attracted strong interest from both equity and debt investors, leading to total financial commitments of $21.25 billion.

Ben Dell, Managing Partner of Kimmeridge and Chairman of Commonwealth LNG, said the milestone reflects years of planning, strong partnerships and commitment to building a fully integrated “wellhead-to-water” LNG business.

The project has already secured long-term LNG supply agreements with major global companies including EQT, Glencore, Mercuria, PETRONAS and Aramco Trading.

Phase 1 of the development is expected to generate more than $3 billion in annual export revenue once operations begin in 2030.

Mubadala Energy currently holds a 24.1 percent stake in the Caturus platform, which includes Commonwealth LNG and upstream natural gas operations. The company is also participating as an equity investor in the project financing.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, said the FID is a major milestone for Commonwealth LNG and an important step in delivering the company’s integrated gas strategy.

He added that the investment strengthens Mubadala Energy’s international growth plans and expands its position across the global gas value chain.

Canada Pension Plan Investment Board (CPP Investments) will invest an additional $1.2 billion in the project, increasing its total stake in the Caturus platform to 31 percent, including earlier investments.

Bill Rogers, Managing Director and Head of Sustainable Energies at CPP Investments, said Caturus stands out because of its integrated approach covering natural gas production and LNG exports. He said the platform is well-positioned to support long-term energy reliability and market demand.

Other major financial partners in the project include EOC Partners, BlackRock-managed funds and accounts, and an Ares Infrastructure Opportunities fund.

Caturus has also authorised Technip Energies, the engineering, procurement and construction (EPC) partner for Commonwealth LNG, to begin ordering major equipment for the facility. The company plans to use modular construction methods to improve safety and efficiency.

The LNG facility will feature six Baker Hughes mixed-refrigerant compressors powered by LM9000 gas turbines, six Honeywell main cryogenic heat exchangers, and four Titan 350 gas turbine-generators from Solar Turbines. The terminal will also be capable of loading LNG carriers with capacities of up to 216,000 cubic metres.

Caturus CEO David Lawler said global gas demand continues to rise rapidly and the company aims to become a leading integrated natural gas producer and LNG exporter in the United States.

Ahead of the Commonwealth LNG FID, Caturus expanded its upstream portfolio through the acquisition of Galvan Ranch natural gas assets from SM Energy. The company is now producing more than 1 billion cubic feet equivalent of natural gas per day on a net basis and ranks among the top 10 private US natural gas producers.