(Cheniere, 5.Aug.2024) â Cheniere Energy, Inc. announced that its subsidiary Cheniere Marketing, LLC, entered into a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with Galp Trading S.A., a subsidiary of Galp Energia, SGPS, S.A.
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 (âTrain Eightâ) of the Sabine Pass Liquefaction Expansion Project (âSPL Expansion Projectâ). The SPA includes a limited number of early cargoes to be purchased by Galp prior to the start of Train Eight.
âWe are pleased to enter into this long-term agreement with Galp, a leader across Iberiaâs energy sector, which reinforces the critical role US natural gas is expected to play in Europeâs energy mix into the second half of this century,â said Jack Fusco, Cheniereâs President and Chief Executive Officer.
âWe look forward to providing our flexible, reliable and cleaner burning LNG to Galp under this new long-term agreement. This SPA is expected to provide further support for the SPL Expansion Project, and demonstrates continued momentum as we progress development of the project,â Fusco said.
The SPL Expansion Project
The SPL Expansion Project is being developed for up to approximately 20 mtpa of LNG capacity, inclusive of estimated debottlenecking opportunities. In Feb. 2024, certain subsidiaries of Cheniere Energy Partners, L.P. submitted an application to the Federal Energy Regulatory Commission for authorization to site, construct and operate the SPL Expansion Project, as well as an application to the Department of Energy requesting authorization to export LNG to Free-Trade Agreement (âFTAâ) and non-FTA countries.
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