Cheniere Energy announced that Cheniere’s subsidiary, Cheniere Marketing has entered into a long-term LNG sale and purchase agreement (SPA) with the Norwegian Equinor.
Under the SPA, Equinor has agreed to purchase approximately 1.75 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board (“FOB”) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Delivery of half of the volume associated with the SPA will commence in 2027, and delivery of the remaining half, which is subject to, among other things, a positive Final Investment Decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project , will commence at the end of this decade. The term of the SPA is 15 years from the commencement of delivery of the full 1.75 mtpa of LNG volumes.
The SPL Expansion Project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of approximately 20 mtpa of LNG.
(Source and image: Cheniere – Cheniere tank at Sabine Pass facility)