Cheniere Energy Inc. subsidiary Cheniere Corpus Christi Liquefaction Stage III LLC (CCL Stage III) has amended the long-term integrated production marketing (IPM) gas supply agreement it signed in 2019 with EOG Resources Inc., extending its term and tripling its volume.
Under the amended IPM transaction, EOG agreed to sell 420 MMcfd to Cheniere for 15 years, with one third of the supply targeted to start upon completion of each of Trains 1, 4, and 5 of the Corpus Christi Stage III project. The LNG associated with this gas supply, about 2.55 million tonnes/year (tpy), will be owned and marketed by Cheniere, and EOG will receive a price based on the Platts Japan Korea Marker (JKM).
The earlier gas supply agreement, under which EOG will sell 300 MMcfd to Cheniere at a price indexed to Henry Hub, has also been extended to 15 years. EOG will supply a total of 720 MMcfd to CCL Stage III under the amended agreements for 15 years upon start-up of the project.
EOG will continue to sell 140 MMcfd to Corpus Christi Liquefaction LLC, which commenced in 2020, until the amended long-term agreements start. LNG associated with this gas supply, 850,000 tpy, is owned and marketed by Cheniere, and EOG receives a price based on JKM for the gas.
CCL Stage III will include seven midscale liquefaction trains with a total expected nominal production capacity exceeding 10 million tpy.
Cheniere anticipates taking final investment decision on CCL Stage III in 2022 (OGJ Online, Oct. 26, 2021). The project would bring Corpus Christi LNG’s total capacity to 25 million tpy.