Cheniere, EOG sign long-term gas supply agreements

Cheniere Energy Inc. subsidiaries Corpus Christi Liquefaction LLC and Cheniere Corpus Christi Liquefaction Stage III LLC have entered into long-term gas supply agreements with EOG Resources Inc.

EOG has agreed to sell natural gas to Cheniere over a 15-year period beginning in early 2020. The quantity will start at 140,000 MMbtu/day and increase to 440,000 MMbtu/day. The LNG associated with 140,000 MMbtu/day will be owned and marketed by Cheniere. EOG will receive a price based on the Platts Japan Korea Marker (JKM). The remaining 300,000 MMbtu/day will be sold by EOG to Cheniere at a price indexed to Henry Hub.

A portion of the transaction is subject to certain conditions, including a positive final investment decision on Cheniere’s Corpus Christi Stage III project, which is being developed to include up to seven midscale liquefaction trains with a total expected aggregate nominal production capacity of 9.5 million tonnes/year. The project received a positive environmental assessment from the US Federal Energy Regulatory Commission in March and is anticipated to receive all remaining regulatory approvals by yearend.