ChevTex & Cheniere Finalize LNG Capacity Deal at Sabine Pass

An affiliate of ChevronTexaco Global Gas and Sabine Pass LNG, L.P., a subsidiary of Cheniere Energy have finalized a 20-year agreement for 700 million cubic feet per day (mmcf/d) of reserved regasification capacity at Cheniere's Sabine Pass Liquefied Natural Gas (LNG) terminal. The agreement also includes options to reduce or expand capacity.

John Gass, president of ChevronTexaco Global Gas, said, "This agreement is a significant milestone in achieving ChevronTexaco's strategy to create a high-impact gas business. Securing this capacity provides us with access to the key U.S. Gulf Coast market, which is critical to successfully commercializing our undeveloped natural gas resources."

Keith Meyer, president of Cheniere LNG Inc., said, "Finalizing this agreement is yet another important development as we prepare to construct Sabine Pass. We welcome ChevronTexaco and we are proud to have this opportunity to work with them to satisfy our nation's need for new supplies of natural gas."

"ChevronTexaco is pursuing a portfolio of LNG terminal opportunities in North America to provide flexibility in delivering reliable and affordable supplies of clean natural gas to consumers. We look forward to working closely with Cheniere to ensure the success of this project," said Gass.