San Ramon, California (dpa) - Cheniere Energy on Wednesday announced that two of its subsidiaries have each entered into long-term liquefied natural gas (LNG), sale and purchase agreements (SPA) with Chevron.
At plateau, Chevron will purchase a combined 2.0 million tonnes per annum (mtpa) of LNG from Cheniere subsidiaries, subject to certain conditions.
Under the first SPA, Chevron has agreed to purchase approximately 1.0 mtpa of LNG from Sabine Pass Liquefaction on a Free On Board (FOB) basis.
Deliveries under the SPA will begin in 2026, reach the full 1.0 mtpa during 2027 and continue until mid-2042.
Under the second SPA, Chevron has agreed to purchase approximately 1.0 mtpa of LNG from Cheniere Marketing on an FOB basis with deliveries beginning in 2027 and continuing for approximately 15 years.
The purchase price for LNG under the SPAs is indexed to the Henry Hub price, plus a fixed liquefaction fee.Additionally, Cheniere's subsidiary, Sabine Pass LNG, L.P., and Chevron have agreed to terms for the early termination of their LNG Terminal Use Agreement or TUA, in return for a lump sum payment to be made by Chevron to Sabine Pass LNG during calendar year 2022.
Termination of the TUA is subject to the consent of certain lenders to Cheniere Energy Partners, L.P., expected during the third quarter of 2022.