Oct 25 (Reuters) - U.S. liquefied natural gas (LNG) company
Cheniere Energy Inc said on Monday that its marketing
arm will sell LNG to a unit of Glencore PLC, moving
Cheniere's proposed Stage 3 expansion of its Texas export plant
closer to approval.
The deal is one of several announced in recent weeks as LNG
buyers seek to lock in long-term supplies and prices of the
super-cooled fuel as global energy shortages boost prices to
Utilities around the world are competing for LNG cargoes to
fill dangerously low gas stockpiles in Europe ahead of the
winter heating season and meet insatiable demand for the fuel in
Asia where coal and gas shortages have already caused power
blackouts in China.
Under the sale and purchase agreement (SPA), Cheniere said
Glencore, an Anglo-Swiss commodity trading and mining firm,
agreed to purchase approximately 0.8 million tonnes per annum
(MTPA) of LNG from Cheniere Marketing on a free-on-board basis
for about 13 years beginning in April 2023.
The purchase price of the LNG will be indexed to prices at
the U.S. Henry Hub gas benchmark in Louisiana, plus a fixed
liquefaction fee, Cheniere said.
"This SPA further builds upon Cheniere's commercial
momentum, marking another important milestone in contracting our
LNG capacity ahead of an FID (final investment decision) of
Corpus Christi Stage 3, which we expect to occur next year,"
Cheniere CEO Jack Fusco said in a release.
Cheniere's Corpus Christi Stage 3 would add up to seven
mid-scale liquefaction trains that would produce around 10 MTPA
Earlier this month, Chinese gas distribution company ENN
Natural Gas Co Ltd agreed to buy about 0.9 MTPA of
LNG from Cheniere in a 13-year deal.
Separately, units of China Petroleum and Chemical Corp
, or Sinopec, agreed to buy LNG from Venture Global
LNG, another U.S. LNG company.
(Reporting by Scott DiSavino
Editing by Paul Simao)