HOUSTON—Cheniere Energy Partners LP (NYSE American: CQP) announced Dec. 18 that its subsidiary Sabine Pass Liquefaction LLC has entered into an LNG sale and purchase agreement with Petronas LNG Ltd., a subsidiary of the Malaysian state-owned oil and gas company, Petronas.
PLL has agreed to purchase approximately 1.1 million tonnes per annum of LNG from Sabine Pass Liquefaction on a free onboard basis for a term of 20 years following the date of first commercial delivery for the sixth natural gas liquefaction train at the Sabine Pass liquefaction project. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
“Petronas is one of the largest and most experienced participants in the global LNG market, and we are pleased to have it as our newest foundation customer at Sabine Pass, supporting Train 6,” said Jack Fusco, chairman, president and CEO of Cheniere Partners. “This 20-year agreement with Sabine Pass Liquefaction continues our momentum on Train 6, where early engineering, procurement, and site preparation activities have recently commenced ahead of a final investment decision. We expect this SPA to support our continued progress toward a final investment decision in 2019.”
Petronas Vice President of LNG Marketing & Trading Ahmad Adly Alias said, “Petronas is pleased to enter into this long-term relationship with Cheniere Partners. With the addition of this new volume, it will enhance Petronas’ supply portfolio and further strengthen our position as a reliable global LNG portfolio player.”
The SPA is subject to certain conditions precedent, including but not limited to Sabine Pass Liquefaction making a final investment decision to construct Train 6 of the SPL Project.
Recommended Reading
Permian Resources Closes $820MM Bolt-on of Oxy’s Delaware Assets
2024-09-17 - The Permian Resources acquisition includes about 29,500 net acres, 9,900 net royalty acres and average production of 15,000 boe/d from Occidental Petroleum’s assets in Reeves County, Texas.
Seadrill to Adopt Oil States’ Offshore MPD Technology
2024-09-17 - As part of their collaboration, Seadrill will be adopting Oil States International’s managed pressure drilling integrated riser joints in its offshore drilling operations.
E&P Highlights: Sept. 16, 2024
2024-09-16 - Here’s a roundup of the latest E&P headlines, with an update on Hurricane Francine and a major contract between Saipem and QatarEnergy.
Chevron Pushing Longer Laterals in Argentina’s Vaca Muerta Shale
2024-09-13 - Chevron Corp., already drilling nearly 2.8-mile laterals at its Loma Campana Field in Argentina, wants to drill even longer horizontals, an executive told Hart Energy.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-09-13 - The oil and gas rig count rose by eight in the week to Sept. 13 to 590, returning to mid-June levels. The increase was the biggest since the week to Sept. 15, 2023.