Cheniere Marketing, LLC has signed a binding 13-year liquefied natural gas (LNG) sales and purchase agreement (SPA) with a unit of Glencore plc, parent company Cheniere Energy Inc. reported Monday.
Glencore will purchase approximately 0.8 million metric tons/year (mmty) on a free-on-board basis under the SPA. Cheniere said the 13-year term starts in April 2023. It added the LNG purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee.
“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,” said Cheniere CEO Jack Fusco.
Earlier this month, Cheniere revealed that it had signed another 13-year SPA with a Chinese utility for 0.9 mmty of LNG.
Cheniere tweeted Monday that the Glencore SPA “builds upon our commercial momentum” as it prepares to take a final investment decision (FID) on expanding its Corpus Christi Liquefaction (CCL) facility. Located on Corpus Christi Bay in San Patricio County, Texas, CCL boasts three liquefaction trains capable of producing approximately 15 mmty of LNG.
The fully permitted Corpus Christi Stage 3 project would add up to seven midscale trains with roughly 10 mmty of total nominal production capacity, according to Cheniere, which expects to reach FID for the expansion in 2022.
“LNG represents one of our division’s key strategic pillars and this long-term agreement is a testament of our intention to continue to grow the business,” said Glencore Head of Oil Marketing Alex Sanna.
Elsewhere on the U.S. Gulf Coast, Cheniere operates the five-train, 30-mmty Sabine Pass liquefaction facility in the southwestern corner of Louisiana.
