A long-term sales and purchase deal between Kimmeridge's Commonwealth LNG, the developer of the 9.5 mtpa LNG export project near Cameron, Louisiana, and Japan's JERA has been terminated, according to a filing with the US Department of Energy, reported several industry media outlets.
Commonwealth LNG is a 9.5 Mtpa permitted liquefied natural gas (LNG) export terminal project on the U.S. Gulf Coast near Cameron, Louisiana. The deal was inked in June 2025, for a period of 20 years, for volumes of 1 million tons annually. Commonwealth LNG planned first production in 2029 at the time, but later in the year pushed the start of production forward to 2031. The company blamed the temporary ban on new liquefied natural gas capacity that the Biden administration imposed on the industry in its final year, following a report by an environmentalist that claimed LNG is more harmful than coal for the atmosphere.
According to the report, the Japanese major, which is the largest buyer of liquefied natural gas in the world, last year presented plans to triple its purchases from the United States to as much as 5.5 million tons annually. That would have been a 10% increase on its current imports from the U.S., making up a third of its total LNG purchases.
The purchases were to be made under long-term contracts, with deliveries starting from 2030. Half of the contracted amount, or 2.5 million tons annually, was part of non-binding agreements. The LNG producers involved in the deals included Cheniere Energy and Sempra Infrastructure, besides Commonwealth LNG.
According to IndexBox, Japan's efforts to secure energy supplies are intensifying due to ongoing supply concerns related to the Middle East. As part of these measures, the Japanese government has eased restrictions on coal power generation for a one-year period beginning this month. A Japanese industry ministry official stated last month that increasing uncertainty around future LNG procurement necessitates greater operation of coal-fired power plants and conservation of LNG fuel.
JERA cancels long-term LNG deal with Commonwealth LNG
