Under the terms of the SPA, PLL has agreed to purchase approximately 1.1 million tpy of LNG from Sabine Pass Liquefaction on a free on board basis for a 20-year term following the date of the first commercial delivery for the sixth natural gas liquefaction train (Train 6) at the Sabine Pass LNG project. According to the statement, the purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
Jack Fusco, Chairman, President and CEO of Cheniere Partners, said: “Petronas is one of the largest and most experienced participants in the global LNG market, and we are pleased to have it as our newest foundation customer at Sabine Pass, supporting Train 6.
“This 20-year agreement with Sabine Pass Liquefaction continues our momentum on Train 6, where early engineering, procurement, and site preparation activities have recently commenced ahead of a final investment decision. We expect this SPA to support our continued progress toward a final investment decision in 2019.”
Petronas Vice President of LNG Marketing & Trading, Ahmad Adly Alias, added: “Petronas is pleased to enter into this long-term relationship with Cheniere Partners. With the addition of this new volume, it will enhance PETRONAS’ supply portfolio and further strengthen our position as a reliable global LNG portfolio player.”
Cheniere claims that the SPA remains subject to certain conditions, including but not limited to Sabine Pass Liquefaction making a final investment decision to construct Train 6 of the project.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/31122018/cheniere-enters-lng-spa-with-petronas-lng/