Cheniere Energy announced today that they have entered into a long-term LNG purchase and sale agreement with BASF.

BASF has agreed to purchase up to 0.8 million tonnes per annum (mtpa) of LNG from Cheniere on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026 and will increase to approximately 0.8 mtpa upon the start of commercial operations of the first train in the Sabine Pass Liquefaction (SPL) Expansion Project. The term of the agreement extends through 2043.

“We are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” Dr. Dirk Elvermann, BASF’s CFO said in a press release. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”

The SPL Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.