Chevron Agrees Long-Term Deal To Buy 2 MTPA of LNG From Cheniere
Cheniere Energy has signed a deal with Chevron for the delivery of up to 2 million tons per annum of LNG from its Sabine Pass LNG and Corpus Christi LNG projects.
Under the first sale and purchase agreement, signed with Sabine Pass Liquefaction, Chevron has agreed to purchase approximately 1.0 mtpa of LNG from SPL on a free-on-board (FOB) basis. Deliveries under the SPA will begin in 2026, reach the full 1.0 mtpa during 2027 and continue until mid-2042.
Under the second SPA, signed with Cheniere Marketing, Chevron has agreed to purchase approximately 1.0 mtpa of LNG from Cheniere Marketing on a FOB basis with deliveries beginning in 2027 and continuing for approximately 15 years. The Cheniere Marketing SPA is subject to Cheniere making a positive final investment decision to construct additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage III Project. The purchase price for LNG under the SPAs is indexed to the Henry Hub price, plus a fixed liquefaction fee.
Additionally, Cheniere’s subsidiary, Sabine Pass LNG, and Chevron have agreed to terms for the early termination of their LNG Terminal Use Agreement (TUA) in return for a lump sum payment to be made by Chevron to SPLNG during the calendar year 2022. Termination of the TUA is subject to the consent of certain lenders to Cheniere Energy Partners, expected during the third quarter of 2022.
“We are pleased to welcome Chevron, one of the world’s premier integrated energy companies, as a valued long-term LNG offtaker,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “These long-term SPAs underscore the growing demand for reliable, cleaner burning LNG supply beyond 2040 and further support investment in additional LNG capacity beyond our Corpus Christi Stage III project. We look forward to leveraging our market-leading LNG platform to explore opportunities to collaborate with Chevron on lower-carbon initiatives in the future.”
"Our strategy is to deliver lower carbon energy to a growing world," said Colin Parfitt, Chevron Vice President, Midstream. "Our agreements with Cheniere allow us to harness growing U.S. natural gas production and Gulf Coast LNG export capacity to help meet long-term demand for affordable, reliable, and ever cleaner energy.”
Deals with Cheniere follow Chevron’s agreement with Venture Global to purchase a combined 2 mtpa of LNG from Plaquemines LNG and CP2 LNG projects for a 20-year term.
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