Houston-based Cheniere through its subsidiary Cheniere Marketing has signed a long-term LNG sale and purchase deal with Galp, a subsidiary of Portuguese Galp Energia.
The leading producer and exporter of LNG in the United States, Cheniere, reports that Galp has agreed to purchase approximately 0.5 mtpa of LNG for 20 years from Cheniere Marketing.
The volumes will be purchased on a free-on-board basis and priced indexed to Henry Hub plus a fixed liquefaction fee.
Deliveries are expected to start in the early 2030s and are subject (among other things) to a positive final investment decision with respect to the second train (Train Eight) of the Sabine Pass Liquefaction Expansion Project – SPL Expansion Project.
The agreement also includes a limited number of early cargoes to be purchased by Galp prior to the start of Train Eight.
“We are pleased to enter into this long-term agreement with Galp, a leader across Iberia’s energy sector, which reinforces the critical role US natural gas is expected to play in Europe’s energy mix into the second half of this century,” said Jack Fusco, Cheniere’s president and chief executive officer.
The SPL Expansion Project is being developed for up to approximately 20 mtpa of LNG capacity, inclusive of estimated debottlenecking opportunities.
Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 45 mtpa of LNG in operation and an additional 10-plus mtpa of expected production capacity under construction.
