Cheniere Strikes LNG Deal with Glencore

Cheniere Energy, Inc. (NYSE American: LNG) has announced that its subsidiary, Cheniere Marketing LLC, has entered into a binding liquefied natural gas sale and purchase agreement with a subsidiary of Glencore plc.

As part of the deal, Glencore has agreed to purchase approximately 0.8 million tons per annum of LNG from Cheniere Marketing on a free-on-board basis for a term of approximately 13 years beginning in April 2023, Cheniere revealed. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee, Cheniere noted.

“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,” Jack Fusco, Cheniere’s president and chief executive officer, said in a company statement.

“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,” he added in the statement. “This SPA further builds upon Cheniere’s commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year,” Fusco went on to say.

The Corpus Christi Stage 3 project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 10 million tons per annum, Cheniere highlighted, adding that it has received all necessary regulatory approvals. The development would bring the Corpus Christi Liquefaction facility’s total nominal capacity to approximately 25 million tons per annum, Cheniere outlines on its website.

Earlier this month, Cheniere announced that its subsidiary, Cheniere Marketing, had entered into an LNG SPA with ENN LNG (Singapore) Pte Ltd, a wholly owned subsidiary of ENN Natural Gas Co., Ltd. Under the deal, ENN LNG has agreed to purchase approximately 0.9 million tons per annum of LNG from Cheniere Marketing on a free-on-board basis for a term of approximately 13 years beginning in July 2022.

Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, according to its website, which highlights that the company is a full-service LNG provider, with capabilities including gas procurement and transportation, liquefaction, vessel chartering and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tons per annum of LNG operating or under construction, the company highlights on its site.

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