US LNG exporter Cheniere has signed two long-term deals to supply liquefied natural gas to compatriot energy giant Chevron.
Cheniere’s units Sabine Pass Liquefaction (SPL) and Cheniere Marketing have each entered into long-term LNG sale and purchase agreements with Chevron U.S.A., a subsidiary of Chevron.
At plateau, Chevron would purchase a combined 2 million tonnes per annum of LNG from Cheniere subsidiaries, subject to certain conditions, according to a Cheniere statement on Wednesday.
Under the first SPA, Chevron has agreed to purchase about 1 mtpa of LNG from SPL on a free-on-board (FOB) basis.
Deliveries under the SPA would begin in 2026, reach the full 1 mtpa during 2027 and continue until mid-2042, Cheniere said.
In addition, Chevron has agreed to purchase about 1 mtpa of LNG from Cheniere Marketing on an FOB basis with deliveries beginning in 2027 and continuing for about 15 years.
The Cheniere Marketing SPA remains subject to Cheniere making a positive final investment decision to construct additional liquefaction capacity at the Corpus Christi LNG terminal beyond the seven-train Corpus Christi Stage III project, it said.
Also, the Henry Hub-linked LNG deals would include a fixed liquefaction fee, Cheniere said in a statement on Wednesday.
Cheniere just announced a final investment decision on the Stage 3 expansion at its Corpus Christi LNG export plant in Texas.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.
Under the expansion, Cheniere will add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.
Termination of Sabine Pass terminal use deal
Besides the SPAs, Cheniere said that its subsidiary, Sabine Pass LNG (SPLNG), and Chevron have agreed to terms for the early termination of their LNG terminal use agreement.
In return, Chevron would make a lump sum payment to SPLNG during calendar year 2022, it said.
Termination of the agreement remains subject to the consent of certain lenders to Cheniere Energy Partners, expected during the third quarter of 2022, Cheniere said.
