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Cheniere Energy Inc. and Cheniere Energy Partners LP entered into a long-term integrated production marketing (IPM) gas supply agreement with ARC Resources U.S. Corp., a subsidiary of Canada’s ARC Resources Ltd.
Per the IPM agreement, ARC Resources will sell 140,000 MMBtu per day of gas to Sabine Pass Liquefaction Stage V LLC (SPL Stage 5) for 15 years, commencing with commercial operations of the first train—Train7—of the Sabine Pass Liquefaction Expansion Project.
The agreement is the second between Cheniere and ARC Resources, and further progresses the commercialization of the SPL Expansion Project, Cheniere’s President and CEO Jack Fusco said Nov. 29 in a press release.
SPL Stage 5 will pay ARC Resources an LNG-linked price for its gas, based upon the Dutch Title Transfer Facility (TTF) price, after deductions for a fixed regasification fee, fixed LNG shipping costs and a fixed liquefaction fee.
The IPM agreement is subject to a positive final investment decision (FID) related to Train 7. Approximately 0.85 million tonnes per annum (mtpa) of LNG associated with this gas supply will be marketed by Cheniere Marketing International LLP, a subsidiary of Cheniere.
“Through this agreement, we are advancing our LNG strategy and delivering low-cost, low-emission natural gas to consuming regions in Europe—the first long-term arrangement of its kind for a Canadian producer,” ARC Resources President and CEO Terry Anderson said in the release.
12-cargo deal with OMV
Cheniere Marketing also entered into an LNG sale and purchase agreement with OMV Gas Marketing and Trading GMBH, a wholly-owned subsidiary of OMV AG.
Per the deal, Cheniere Marketing will supply OMV with up to 12 LNG cargoes per year, or around 0.85 mtpa at a TTF-linked price commencing in late 2029. The LNG will be sold to OMV on a delivered ex-ship basis at the Gate LNG Terminal in the Netherlands where OMV holds regasification capacity.
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