The USA based and New York Stock Exchange listed Cheniere Energy, Inc. announced that their subsidiary, Cheniere Marketing, LLC has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with Equinor ASA in Norway.

Equinor will as per contract purchase approximately 1.75 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board (FOB) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee.

As per statement the delivery of half of the volume as per contract will commence in 2027, and delivery of the remaining half, which is subject to, among other things, a positive Final Investment Decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project, will commence at the end of this decade. It is stated that the term of the contract is 15 years from the commencement of delivery of the full 1.75 mtpa of LNG volumes.

It is mentioned by Cheniere that the SPL Expansion Project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of approximately 20 mtpa of LNG, and in May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.

Video credit: Cheniere Energy Inc