Cheniere’s subsidiary Sabine Pass Liquefaction has entered into a 20 year LNG sale and purchase agreement with Malaysia’s state-owned oil and gas company, PETRONAS.
PETRONAS LNG has agreed to purchase approximately 1.1 million tonnes per annum of LNG from Sabine Pass Liquefaction on a free on board basis for a term of 20 years following the date of first commercial delivery for the sixth natural gas liquefaction train at the Sabine Pass liquefaction project. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
“This 20-year agreement with Sabine Pass Liquefaction continues our momentum on Train 6, where early engineering, procurement, and site preparation activities have recently commenced ahead of a final investment decision. We expect this SPA to support our continued progress toward a final investment decision in 2019,” said Jack Fusco, Chairman, president and CEO of Cheniere Partners.
PETRONAS Vice President of LNG Marketing & Trading, Ahmad Adly Alias said: “PETRONAS is pleased to enter into this long-term relationship with Cheniere Partners. With the addition of this new volume, it will enhance PETRONAS’ supply portfolio and further strengthen our position as a reliable global LNG portfolio player.”
The SPA is subject to certain conditions precedent, including but not limited to Sabine Pass Liquefaction making a final investment decision to construct Train 6 of the SPL Project.