Kirkland & Ellis announced on May 18 that it represented Caturus LLC in the Final Investment Decision for the $13 billion Commonwealth LNG project, which includes financing for construction of a liquefied natural gas export facility in Cameron Parish, Louisiana. The total commitments for the project reached $21.25 billion from both equity and debt investors.
The Commonwealth LNG facility is designed to produce 9.5 million tonnes per annum of liquefied natural gas. Equity participants include Mubadala Energy, which holds a 24.1% stake in the Caturus platform, and Canada Pension Plan Investment Board, which contributed $1.2 billion to increase its total stake to 31%. Other financial partners involved are EOC Partners, funds and accounts managed by BlackRock, and an Ares Infrastructure Opportunities fund.
Caturus considers this facility a key part of its integrated natural gas strategy as it aims to meet growing global demand for reliable energy with a lower-carbon footprint. The company said this approach gives it direct oversight over exploration and production of natural gas as well as liquefaction capabilities for export.
The Kirkland team advising on the transaction included lawyers specializing in corporate law, debt finance, capital markets, tax law, and executive compensation.
Broader implications of this investment may include increased U.S.-based LNG exports as global markets seek new sources of energy supply.
