Cheniere signs LNG supply agreement supporting Sabine Pass expansion

Cheniere Marketing LLC, a Cheniere Energy Inc. subsidiary, has agreed to a long-term LNG supply agreement with Equinor ASA.

The supply agreement provides for provision of LNG on a free-on-board basis for a purchase price indexed to Henry Hub, plus a fixed liquefaction fee. Delivery of half of the volume will begin in 2027, and delivery of the remaining half, which is subject to, among other things, a positive final investment decision with respect to the first train of the Sabine Pass liquefaction expansion project (SPL expansion project) in Cameron Parish, La., will begin at the end of this decade.

The term of the SPA is 15 years from the start of delivery of the full 1.75 million tonnes/year (tpy) of LNG.

The SPL expansion project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of about 20 million tpy of LNG. In May 2023, certain subsidiaries of Cheniere Energy Partners LP entered the pre-filing review process with respect to the expansion project with the Federal Energy Regulatory Commission under the National Environmental Policy Act (OGJ Online, Feb. 23, 2023).

With the agreement, total volumes Equinor has contracted with Cheniere is around 3.5 million tpy (OGJ Online, June 9, 2022).