Cheniere and BASF sign long-term LNG SPA
Published by Jessica Casey,
Editor
LNG Industry,
Cheniere Energy, Inc. has announced that Cheniere’s subsidiary, Cheniere Marketing, LLC, has entered into a long-term LNG sale and purchase agreement (SPA) with BASF.
Under the SPA, BASF has agreed to purchase up to approximately 0.8 million tpy of LNG from Cheniere Marketing on a free-on-board (FOB) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026 and, subject to a positive final investment decision with respect to the first train (Train Seven) of the Sabine Pass Liquefaction Expansion Project (SPL Expansion Project) in Louisiana, will increase to approximately 0.8 million tpy upon the start of commercial operations of Train Seven. The term of the SPA extends through 2043.
“We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure stability of its supply chain.”
“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. “While we are reducing our dependence on fossil fuels to reach our goal of net zero carbon emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”
The SPL Expansion Project is being developed for up to approximately 20 million tpy of total LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. 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/23082023/cheniere-and-basf-sign-long-term-lng-spa/
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