Commonwealth Liquefied Natural Gas (LNG) has launched a tender soliciting bids from potential offtakers that could acquire supply from the proposed project in Louisiana at volumes, pricing and durations of their choosing. 

The company is aiming to accelerate the supply contracting process by offering more flexibility. Offtakers could buy on a tolling, free-on-board (FOB) or delivered-at-place (DAP) basis. DAP buying is similar to delivered ex-ship (DES) deals. Commonwealth officials said they believe it is the first time tendering for long-term supply as a way of developing a project has been attempted.

“We believe this process offers a mutually advantageous, low-risk solution for buyers to address their long-term needs while allowing Commonwealth to advance our project...