BG, Cheniere unit sign first US LNG purchase agreement

By OGJ editors

The first sale and purchase agreement for LNG produced from the US Gulf Coast has been signed by BG Group and Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners LP.

The fully termed agreement calls for purchase of 3.5 million tonnes/year of LNG over 20 years from the Sabine Pass LNG terminal in Cameron Parrish, La. The BG announcement said LNG exports are to begin as early as 2015.

Construction of liquefaction at Sabine Pass is to begin in 2012, with Phase 1 to consist of two trains capable of producing up to 9 million tpy of LNG. BG is not an investor in the proposed liquefaction, it said.

BG continues to pursue an expansion at its Lake Charles, La., LNG terminal to provide natural gas liquefaction. The company’s announcement said authorization has been received from the US Department of Energy to export as much as 730 bcf/year of natural gas (about 15 million tpy) from Lake Charles to countries that have a free-trade agreement with the US.

DOE currently is reviewing an application to export natural gas from the Lake Charles LNG terminal to countries that do not have a free-trade agreement with the US, said BG.

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