Cheniere, Petronas Ink 20-Year LNG Purchase Deal
Image by WMNCheniere Energy Partners has entered into a liquefied natural gas (LNG) sale and purchase agreement with Petronas LNG, a unit of Malaysian state-owned oil and gas company, Petronas.
Under the agreement, Petronas LNG would purchase around 1.1 million tonnes LNG per annum from Cheniere’s subsidiary Sabine Pass Liquefaction on a free on board basis.
The deal is 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.
“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,” Jack Fusco, Chairman, President and CEO of Cheniere Partners, said.
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.
