Cheniere signs long-term LNG supply agreement with QatarEnergy
Cheniere Energy Inc. subsidiaries Sabine Pass Liquefaction LLC (SPL) and Corpus Christi Liquefaction LLC (CCL) have each entered into long-term LNG sale and purchase agreements with QatarEnergy.
QatarEnergy will purchase 2 million tonnes/year (tpy) of LNG from each of SPL and CCL on a free-on-board (FOB) basis for a price indexed to the Henry Hub price plus a fixed fee. Deliveries are expected to begin in the early 2030s and continue through end-2054, with 1 million tpy of the SPL agreement subject to a positive final investment decision on the first phase of the SPL Expansion Project.
SPL Expansion Project
Cheniere Energy Partners LP is advancing plans to expand the existing Sabine Pass Liquefaction Project to an expected total peak production capacity of up to about 20 million tpy, inclusive of estimated debottlenecking opportunities, which would grow the total production capacity of the SPL Project to over 50 million tpy of LNG, the company said.
Cheniere is taking a phased approach to the SPL Expansion Project, with the first phase expected to include a single liquefaction train (Train 7) and a boil-off gas re-liquefaction unit, along with supporting infrastructure and tie-ins to the existing Sabine Pass LNG plant in Cameron Parish, La. Inclusive of estimated debottlenecking, Phase 1 has an expected total production capacity of over 6 million tpy of LNG.
In May, Cheniere signed the lump sum, turnkey engineering, procurement, and construction (EPC) contract with Bechtel Energy Inc. for the project’s first phase, and Bechtel was granted a limited notice to proceed with early engineering and procurement works.