Under the terms of the deal, Cheniere Marketing International will sell approximately 89 million MMBtus on an ex-ship basis (DES) from the Sabine Pass LNG terminal located along the Sabine Pass River on the border between Texas and Louisiana, from 2017 through 2018
The latest deal follows the previously signed agreement by Cheniere with EDF in August for the delivery of 26 cargoes of LNG from the Sabine Pass LNG terminal to EDF’s Dunkerque LNG terminal in France.
The sales price for the LNG cargo units will be governed by the Dutch Title Transfer index (TTF), a natural gas pricing index in continental Europe.
Under a sale and purchase agreement (SPA) with Sabine Pass Liquefaction, Cheniere Marketing International has provision to purchase excess of the LNG produced at the facility that is not required by other customers.
Cheniere Marketing has signed similar deal with Corpus Christi Liquefaction which involves supply of excess LNG produced from Cheniere’s Corpus Christi liquefaction project in Texas, US.
The firm is estimated to receive around 9 million tons per annum (mtpa) of LNG from the nine liquefaction trains which are being developed at the two sites.
The company has signed agreements with buyers across Europe and Asia for delivery of 92 cargoes, which would be about 340 million MMBtus.
Deliveries of the cargoes are expected to take place through 2018 time frame.
Cheniere Energy is the owner and operator of the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana.
At the Sabine Pass LNG terminal, the company is building a liquefaction project adjacent to the existing regasification facilities with up to six Trains, each having capacity 4.5 mtpa of LNG.
Image:Aerial view of the Golden Pass terminal located near Sabine Pass in Louisiana. Photo: courtesy of Golden Pass Products.
