Cheniere Energy and Galp Ink 20-Year LNG Agreement for 0.5 Million Tonnes Annually

Author: Benzinga Newsdesk | August 05, 2024 07:33am

Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE:LNG) announced today that its subsidiary Cheniere Marketing, LLC ("Cheniere Marketing"), entered into a long-term liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Galp Trading S.A. ("Galp"), a subsidiary of Galp Energia, SGPS, S.A. ("Galp Energia").

Under the SPA, Galp has agreed to purchase approximately 0.5 million tonnes per annum ("mtpa") of LNG for 20 years from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries are expected to commence in the early 2030s and are subject to, among other things, a positive Final Investment Decision with respect to the second train ("Train Eight") of the Sabine Pass Liquefaction Expansion Project ("SPL Expansion Project"). The SPA includes a limited number of early cargoes to be purchased by Galp prior to the start of Train Eight.

Posted In: CQP LNG