Cheniere Energy, Inc. has announced that its subsidiary, Cheniere Marketing, LLC, has entered into a binding LNG Sales and Purchase Agreement (SPA) with a subsidiary of Glencore plc.
Under the SPA, Glencore has agreed to purchase approximately 0.8 million tpy of LNG from Cheniere Marketing on a free-on-board basis for a term of 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 Chief Executive Officer. “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.”
The Corpus Christi Stage 3 project is being developed to include up to seven mid scale liquefaction trains with a total expected nominal production capacity of approximately 10 million tpy. It has received all necessary regulatory approvals.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26102021/cheniere-and-glencore-sign-long-term-lng-spa/