EQT to purchase LNG from Commonwealth LNG's Louisiana facility for 20 years

By Pooja Menon

Sept 8 (Reuters) - U.S.-based energy company EQT Corp EQT.N will purchase 1 million tonnes per annum (mtpa) of liquefied natural gas from Commonwealth LNG's export facility under development on the Gulf Coast near Cameron, Louisiana, for 20 years, the companies said on Monday.

EQT said it will acquire the LNG on a free-on-board basis at a price indexed to Henry Hub and will market and optimize its cargos internationally.

The additional export capacity will allow EQT to further expand its domestic direct-to-customer strategy into the global energy markets, the company said in a statement.

The United States has been working to cement its position as the world's biggest exporter of LNG, surpassing previous leaders Qatar and Australia.

In January, President Donald Trump lifted a pause on new LNG export permits, which had been imposed by the previous administration in 2024 to review public interest criteria, shortly after assuming office.

Last week, Commonwealth LNG secured final non-free trade agreement export authorization from the U.S. Department of Energy for its export facility in Louisiana.

Commonwealth's facility is designed to produce 9.5 million tonnes of LNG annually and received approval from the Federal Energy Regulatory Commission in June.

The company plans to make a final investment decision in the fourth quarter of this year, with first production targeted for 2029.

"This is another marketing agreement that enhances EQT's LNG portfolio, signaling potential upside from international pricing arbitrage and supporting long-term production growth," said Gabriele Sorbara, analyst at Siebert Williams Shank.

Sorbara added that the recent supply and marketing deals are strategic positives that could differentiate EQT from domestic gas peers in the coming years.

EQT recently signed a similar 20-year deal with NextDecade NEXT.O to purchase 1.5 mtpa of LNG from its Rio Grande export facility in Texas.