International trading house Gunvor has signed a preliminary deal to pursue a deal to buy liquefied natural gas cargoes from the planned Commonwealth LNG export facility in Louisiana.

The heads of agreement calls for the negotiation and finalisation of a definitive 15-year sale-and-purchase deal for 1.5 million tonnes per annum of LNG from the facility.

The Commonwealth LNG project envisages eight liquefaction trains with nominal production capacity of around 1 million tpa each, six storage tanks each with a capacity of 40,000 cubic metres, and a 3.7-mile natural gas pipeline that would connect to existing pipelines operated by Kinetica Partners and Bridgeline Holdings.

The deal with Gunvor brings the project closer to achieving commercial viability.

Commonwealth LNG chief executive Paul Varello said: "We are proud to be entering into an agreement for a portion of our LNG offtake with the Gunvor Group – one of the world’s premier commodities trading houses. Our mantra is to develop LNG solutions for the next generation; in Gunvor, we have found a commercial partner who not only shares that vision, but through its creativity and innovation exemplifies it."

On the technical side, Commonwealth LNG's developers have lined up TechnipFMC to provide engineering services for the US developer's planned application to the US Federal Energy Regulatory Commission, which is expected to be submitted in the third quarter of this year. A final investment decision is anticipated in 2020.

Commonwealth has also signed a master services agreement with Lloyd Engineering for marine facility and turning basin design, as the proposed project also includes one marine berth sized to accommodate LNG carriers up to an estimated 215,000 cubic metres in capacity.

TechnipFMC and Lloyd Engineering are collaborating with CH-IV, which will manage the development of the formal Ferc application for the project.

Heavy lift specialist Mammoet has also been awarded a consulting services contract for transporting the modules.

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Gunvor in Commonwealth LNG pact