Largest US LNG exporter Cheniere agrees to extend purchase agreement with French utility Engie
Cheniere Energy, the largest US LNG exporter from its Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas, has agreed to extend an LNG sales accord with the French utility Engie.
Cheniere said it has agreed with Engie, based in Paris, to amend the LNG sale and purchase agreement (SPA) the parties previously entered into in June 2021.
The Houston, Texas-based company said that under the revised SPA, Engie had agreed to purchase approximately 900,000 tonnes per annum of LNG from Corpus Christi on a free-on-board basis for 20 years and whereby the French provide their own ships.
The FOB contract began in September 2021. Cheniere said the purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.
Engie had previously agreed in June 2021 to purchase between 400,000 tonnes per annum and 1.1 million tonnes per annum of LNG for 11 years.
“We are pleased to build upon the long-term agreement we signed in 2021 with Engie, one of Europe’s energy leaders in low-carbon solutions, to increase the volume and extend the term beyond 2040,” said Jack Fusco, Cheniere’s President and Chief Executive .
“This SPA reflects the importance of a diverse and reliable long-term supply of natural gas for Europe and reinforces the value the LNG market places in Cheniere’s commitment to climate and sustainability initiatives,” added Fusco.
Flexible
“We look forward to continuing to supply Engie with flexible, cleaner burning LNG as part of our shared vision of a lower carbon future,” stated the CEO.
Cheniere is now moving forward with the lump sum, turnkey, engineering, procurement and construction contract with US LNG and energy engineering firm Bechtel Inc. for the Corpus Christi LNG plant expansion.
Cheniere has asked Bechtel to commence early engineering, procurement and other site work for the Corpus Christi expansion, known by Cheniere as the Stage III Project.
Corpus Christi Stage III is a fully permitted project consisting of up to seven mid-scale Trains, each with an expected liquefaction capacity of about 1.49 MTPA with a total production capacity of more than 10 MTPA.
Cheniere said that it was pleased to once again partner with Bechtel following the engineering firm’s “unmatched track record for execution excellence” while successfully building Cheniere’s LNG platform.
Cheniere in February 2022 announced the completion of Train 6 at Sabine Pass plant Cameron Parish in Louisiana, formally taking nameplate capacity to 27 MTPA.
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