Cheniere, Chevron Ink Long-Term LNG Sale And Purchase Agreements
(RTTNews) - Cheniere Energy, Inc. (LNG) announced Wednesday that two of its subsidiaries, Sabine Pass Liquefaction, LLC and Cheniere Marketing, LLC, have each entered into long-term liquefied natural gas or LNG, sale and purchase agreements or SPA, with Chevron U.S.A. Inc., a wholly-owned subsidiary of Chevron Corp. (CVX).
At plateau, Chevron will purchase a combined 2.0 million tonnes per annum (mtpa) of LNG from Cheniere subsidiaries, subject to certain conditions.
Under the first SPA, Chevron has agreed to purchase approximately 1.0 mtpa of LNG from Sabine on a FOB basis. Deliveries under the SPA will begin in 2026, reach the full 1.0 mtpa during 2027 and continue until mid-2042.
Under the second SPA, Chevron has agreed to purchase approximately 1.0 mtpa of LNG from Cheniere Marketing on an FOB basis with deliveries beginning in 2027 and continuing for approximately 15 years.
The purchase price for LNG under the SPAs is indexed to the Henry Hub price, plus a fixed liquefaction fee.
Additionally, Cheniere's subsidiary, Sabine Pass LNG, L.P., and Chevron have agreed to terms for the early termination of their LNG Terminal Use Agreement or TUA, in return for a lump sum payment to be made by Chevron to Sabine Pass LNG during calendar year 2022. Termination of the TUA is subject to the consent of certain lenders to Cheniere Energy Partners, L.P., expected during the third quarter of 2022.
Chevron's LNG Plant In Australia Resumes Full Production
Chevron To Acquire PDC Energy In All-stock Deal Valued At $6.3 Bln Or $72/Share
Chevron Q4 Profit Up 25%, But Misses Estimates
Cheniere Energy, Cheniere Energy Partners Name Corey Grindal As EVP And COO
Australia Home Loans Jump 6.4% In Q3
Tech Shares May Weigh On Taiwan Stock Market
U.S. Dollar Weakens Amid Risk Appetite
