Cheniere, Tourmaline sign long-term gas supply agreement

Cheniere Energy Inc. subsidiary Corpus Christi Liquefaction Stage III LLC signed a long-term gas supply agreement (GSA) with Tourmaline Oil Marketing Corp., a subsidiary of Canadian gas producer Tourmaline Oil Corp.

Under the deal, Tourmaline agreed to sell 140,000 MMbtu/d of natural gas to Corpus Christi Stage III for 15 years beginning early 2023. The LNG associated with this gas supply, some 0.85 million tonnes per year (tpy), will be marketed by Cheniere. Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.

Tourmaline Oil Corp. is acting as guarantor of the GSA on behalf of Tourmaline. The deal is expected to support development of the Corpus Christi Stage III project, which is expected to include up to seven midscale liquefaction trains with a total nominal production capacity of 10 million tpy. It has received all necessary regulatory approvals.