Cheniere Energy Inc. subsidiary Cheniere Marketing LLC agreed to provide LNG to Galp Trading SA, a subsidiary of Galp Energia SGPS SA.
Under the agreement, Galp will purchase about 500,000 tonnes/year (tpy) of LNG for 20 years on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries are expected to begin in the early 2030s and are subject to, among other things, a positive final investment decision on the second train (Train 8) of the Sabine Pass Liquefaction Expansion Project. The agreement includes a limited number of early cargoes to be purchased by Galp prior to the start of Train 8.
The SPL Expansion Project is being developed for up to 20 million tpy of LNG capacity, inclusive of estimated debottlenecking opportunities.
In February 2024, Cheniere Energy subsidiaries applied to the Federal Energy Regulatory Commission for authorization to site, construct, and operate the project, as well as an application to the Department of Energy requesting authorization to export LNG to Free-Trade Agreement and non-FTA countries.
