Cheniere Energy’s subsidiaries, Sabine Pass Liquefaction (SPL) and Corpus Christi Liquefaction (CCL), have each entered into long-term LNG sale and purchase agreements (SPAs) with QatarEnergy to supply a total of 4 million tonnes per annum (mtpa) of LNG through 2054.
Jack Fusco, Cheniere’s Chairman, President and Chief Executive Officer, commented: “These pivotal, multi-decade agreements with QatarEnergy, one of the world’s most important energy companies and a cornerstone of the global LNG industry, represent a major long-term commercial commitment and reinforce Cheniere’s position as the leader in U.S. LNG.
“We take pride that Cheniere’s track record of operational excellence, reliability and long-term customer focus provided the foundation for this landmark commercial relationship with QatarEnergy. We look forward to reliably supplying QatarEnergy from both Sabine Pass and Corpus Christi into the second half of this century.”
While confirming the two SPAs for the purchase of LNG from Cheniere’s Sabine Pass and Corpus Christi facilities in Louisiana and Texas respectively, located along the United States Gulf Coast, QatarEnergy explained that these deals reflect its continued confidence in the long-term role of LNG in the global energy mix and its efforts to further develop a flexible, diversified, and globally competitive LNG portfolio.
The SPAs were signed by Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Jack Fusco, Chairman, President and CEO of Cheniere Energy.
Minister Al-Kaabi said: “The signing of these two SPAs marks an important milestone in our LNG strategy. This major long-term purchase will expand and diversify our global LNG portfolio and advance our ability to meet the evolving requirements of the market.
“The additional volumes will complement QatarEnergy’s existing LNG supplies, enhance our supply and trading portfolio, and strengthen our ability to serve customers across the globe.”
The Qatari giant has agreed to purchase 2 mtpa of LNG from each of SPL and CCL on a free-on-board (FOB) basis for a purchase price indexed to the Henry Hub price plus a fixed fee.
The deliveries under the SPAs will begin in the early 2030s and continue through the end of 2054, with 1 mtpa of the SPL SPA subject to a positive final investment decision (FID) for the first phase of the SPL Expansion project.
