Cheniere Energy Inc. subsidiary Cheniere Marketing LLC agreed to a long-term liquefied natural gas deal with BASF.
Under the agreement, BASF will purchase up to about 0.8 million tonnes/year (tpy) of LNG on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will begin in mid-2026 and, subject to a positive final investment decision on the first train (Train 7) of the Sabine Pass Liquefaction expansion project (SPL expansion project) in Cameron Parish, La., will increase to about 0.8 million tpy upon the start of commercial operations of Train 7. The agreement extends through 2043.
“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dr. Dirk Elvermann, BASF’s chief financial officer.
The SPL expansion project is being developed for up to about 20 million tpy of total LNG capacity (OGJ Online, Feb. 23, 2023). In May 2023, certain subsidiaries of Cheniere Energy Partners LP entered the pre-filing review process with respect to the project with the Federal Energy Regulatory Commission.
