Cheniere Energy, Glencore Sign New Long-Term LNG Contract

Image: Seeking Alpha

Houston-based Cheniere Energy and multinational commodity trading and mining company Glencore have signed a long-term sale and purchase agreement (SPA), under which the former will sell 0.8 million metric tons per year of Liquefied Natural Gas (LNG) to Glencore on a free-on-board basis. The 13-year contract will start from April 2023 and be indexed against the Henry Hub benchmark U.S. natural gas price.

“We are pleased to announce this long-term SPA with Glencore, one of the world’s largest producers and marketers of commodities and a significant player in the global LNG market,” said Jack Fusco, President and CEO of Cheniere Energy. “This agreement once again reinforces Cheniere’s position as a leading global LNG provider, and we look forward to a successful long-term relationship with Glencore.”

Cheniere Energy is currently preparing to take a Final Investment Decision (FDI) on the Stage 3 expansion of its Corpus Christi export plant located in San Patricio County, Texas. The facility currently has three liquefaction trains with a production capacity of 15 million tons of LNG per year. The expansion project would add up to seven mid-scale trains and approximately 10 million tons per year of production capacity.

“This SPA further builds upon Cheniere’s commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year,” added Fusco.

Energy Capital & Power (ECP) – in partnership with the African Energy Chamber’s U.S.-Africa Committee – invites U.S. companies, investors and organizations to participate in the first-ever U.S.-Africa Energy Forum (USAEF) (December 9-10, 2021, Houston, Texas), introducing American companies to African opportunities. To learn more about how U.S. firms can advance the agenda of sustainable, long-term investment in African energy, please visit www.energycapitalpower.com. To sponsor, speak or attend USAEF 2021, please contact Senior Director James Chester at james@msgbcoilgasandpower.com

Share This Article

Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on whatsapp
Share on email

Other Reads

Grace Goodrich

Grace Goodrich

Grace Goodrich is a Publications Editor at Energy Capital & Power, where she writes about the intersection of energy, policy and global finance in sub-Saharan Africa's fastest-growing economies. Grace produces our Africa Energy Series investment reports in Angola and Equatorial Guinea (2019), as well as co-authored African Energy Chamber: Road to Recovery (2021).

Subscribe below to stay in touch about the latest news and event updates

X
X