Cheniere, Chevron sign long-term LNG sale, purchase agreements

Sabine Pass (Courtesy Williams Companies)

Cheniere Energy Inc. announced late last week that two of its subsidiaries, Sabine Pass Liquefaction LLC and Cheniere Marketing LLC, have each entered into long-term LNG sale and purchase agreements with Chevron USA Inc., a wholly-owned subsidiary of Chevron Corp., Reuters reports.

At peak, Chevron will purchase a combined 2 million tons per annum of LNG from Cheniere subsidiaries.

Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities, with total production capacity of approximately 45 MTPA of LNG in operation and an additional 10-plus MTPA of expected production capacity under construction.

Under the first SPA, Chevron will purchase about 1 MTPA of LNG from SPL on a free-on-board basis. Deliveries under the SPA will begin in 2026, reach the full 1 MTPA during 2027 and continue until mid-2042. Under the second SPA, Chevron has agreed to purchase approximately 1 MTPA of LNG from Cheniere Marketing on an FOB basis, with deliveries beginning in 2027 and continuing for about 15 years. Read the entire story.