LNG

Cheniere Energy has entered into a binding liquefied natural gas sale and purchase agreement with a subsidiary of global commodities firm Glencore Plc.

Under the SPA, Glencore has agreed to purchase about 800,000 tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis for a term of around 13 years beginning in April 2023.

The purchase price for the cargoes under the accord is indexed to the Henry Hub price with a fixed liquefaction fee.

“We are pleased to announce this long-term SPA with Glencore, one of the world’s largest producers and marketers of commodities and a significant player in the global LNG market,” said Jack Fusco, Cheniere’s President and Chief Executive.

“This agreement once again reinforces Cheniere’s position as a leading global LNG provider, and we look forward to a successful long-term relationship with Glencore,” added Fusco.

Fusco states that he saw the latest deal as further building commercial momentum in contracting capacity ahead of a final investment decision being taken on the expansion of the company's plant at Corpus Christi in Texas.

Mid-scale Trains

The Corpus Christi facility is being developed to include up to seven mid-scale liquefaction Trains with a total expected nominal production capacity of around 10 MTPA and has received all necessary regulatory approvals.

The Cheniere LNG supply deal is the first for London-listed Glencore since it signed a Heads of Agreement in June 2021 for 500,000 tonnes per annum of Arctic LNG from Russian company Novatek.

Glencore’s Novatek volumes would be delivered to a number of locations in East Asia.

Novatek is operator of the existing Yamal LNG export plant and is constructing the Arctic LNG II joint venture on the Gydan Peninsula at a cost $21 billion.

The new Russian plant will produce 19.8 MTPA of LNG as well as gas concentrate from the principal feed-gas resources, adding to Yamal’s output of 17.5 MTPA.