Kimmeridge Texas Gas Takes 90% Stake in Commonwealth LNG

Kimmeridge Texas Gas (KTG), an affiliate of energy-focused alternative investment manager Kimmeridge Energy Management, announced the closing of a follow-on control investment in Commonwealth LNG.

The funding will support a 9.5 million tons per annum (mtpa) LNG export facility in Cameron, LA, through anticipated final investment decision (FID) in the first half of 2025 and will raise Kimmeridge’s equity ownership in Commonwealth to over 90%. Deliveries from the LNG export facility are expected to start in 2028.

“We are delighted to integrate into the Kimmeridge team as we work towards FID in 2025. Kimmeridge shares our vision of bringing a differentiated offering to the LNG market, and we look forward to commencing delivery to our customers in 2028,” Farhad Ahrabi, Commonwealth CEO and president, said.

In addition, KTG has appointed former chairman and president of BP America David Lawler as CEO, effective immediately, to advance KTG’s efforts to become a fully integrated provider of LNG from “well-head to water.”

Paul Varello, Commonwealth LNG founder and executive chairman, revealed his retirement, effective with the sale of his company to Kimmeridge, capping an energy sector career spanning more than five decades.

With approximately 148,000 net acres in Texas, KTG produces approximately 400 million cubic feet equivalent of natural gas and oil per day, selling into the South Texas market.