Cheniere announces long-term integrated production marketing agreement with ARC Resources

Under the IPM agreement, ARC Resources has agreed to sell 140 000 million Btu/d of natural gas to SPL Stage 5 for a term of 15 years, commencing with commercial operations of the first train (Train 7) of the Sabine Pass liquefaction expansion project (SPL expansion project). SPL Stage 5 will pay ARC Resources an LNG-linked price for its gas, based upon the Dutch Title Transfer Facility (TTF) price, after deductions for a fixed regasification fee, fixed LNG shipping costs and a fixed liquefaction fee. The IPM agreement is subject to, among other things, a positive final investment decision with respect to Train 7. The LNG associated with this gas supply, approximately 0.85 million tpy, will be marketed by Cheniere Marketing International LLP.

“This is the second long-term IPM agreement between Cheniere and ARC Resources, and further progresses the commercialisation of the SPL expansion project. This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important,” said Jack Fusco, Cheniere’s President and CEO. “We are pleased to build upon our existing long-term relationship with ARC Resources, and further demonstrate Cheniere’s ability to construct innovative solutions that help meet the needs of customers and counterparties along the LNG value chain while delivering value to our stakeholders.”

“Canadian natural gas can play a critical role in helping to meet growing global energy demand,” added Terry Anderson, President and CEO, ARC Resources. “Through this agreement, we are advancing our LNG strategy and delivering low-cost, low-emission natural gas to consuming regions in Europe – the first long-term arrangement of its kind for a Canadian producer. We are pleased to further our long-term partnership with Cheniere and bring more responsibly produced Canadian energy to the world.”

The SPL expansion project is being developed with a production capacity of up to approximately 20 million tpy of total LNG capacity, inclusive of estimated debottlenecking opportunities. In May 2023, certain subsidiaries of Cheniere Partners entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.

Read the article online at: https://www.lngindustry.com/liquefaction/04122023/cheniere-announces-long-term-integrated-production-marketing-agreement-with-arc-resources/