Cheniere Signs Deal to Supply Chevron with LNG Until 2042

Chevron U.S.A. entered separate sale and purchase agreements with two of Cheniere Energy's subsidiaries, Sabine Pass Liquefaction LLC and Cheniere Marketing LLC, for the combined supply of 2 million tonnes per annum of LNG.

Hart Energy Staff

Two of Cheniere Energy Inc.'s subsidiaries, Sabine Pass Liquefaction LLC and Cheniere Marketing LLC, each entered into long-term sale and purchase agreements (SPA) with Chevron U.S.A. Inc., a company press release announced on June 22.

Per the SPAs, Chevron will purchase approximately 1 mtpa from each Cheniere subsidiary on a free-on-board basis. Under the agreement with Sabine Pass, deliveries will begin in 2026, reaching the full amount during 2027 and continuing through mid-2042. Per the agreement with Cheniere Marketing, deliveries will begin in 2027 and continue for approximately 15 years.

"These long-term SPAs underscore the growing demand for reliable, cleaner burning LNG supply beyond 2040 and further support investment in additional LNG capacity beyond our Corpus Christi Stage III Project," Cheniere executive vice president and COO Anatol Feygin commented. "We look forward to leveraging our market-leading LNG platform to explore opportunities to collaborate with Chevron on lower-carbon initiatives in the future."

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