Houston-based liquefied natural gas producer and exporter Cheniere Energy has announced a binding long-term agreement on the sale and purchase of LNG with commodity trader Glencore.
Under the sale and purchase agreement, Glencore has agreed to purchase approximately 0.8 million metric tons per year of LNG from Cheniere Marketing on a free-on-board basis for approximately 13 years, beginning in April 2023. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.
“We are pleased to announce this long-term SPA with Glencore, one of the world’s largest producers and marketers of commodities and a significant player in the global LNG market,” said Jack Fusco, Cheniere’s President and CEO. “This agreement once again reinforces Cheniere’s position as a leading global LNG provider, and we look forward to a successful long-term relationship with Glencore. This SPA further builds upon Cheniere’s commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year.”
Cheniere Energy’s Corpus Christi Stage 3 project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 10 metric tons per year (mtpa).
“We are pleased to partner with Cheniere, one of the World’s leading LNG providers. LNG represents one of our division’s key strategic pillars and this long-term agreement is a testament of our intention to continue to grow the business,” said Alex Sanna, Head of Oil Marketing at Glencore.
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