- The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.
- Long-term agreement on low carbon solutions.
- This SPA reflects the importance of a diverse and reliable long-term supply of natural gas.
Cheniere Energy’s subsidiary, Corpus Christi Liquefaction (CCL), has reached an agreement with Engie SA (Engie) to amend the LNG sale and purchase agreement (as amended, the SPA) the parties signed in June 2021 as reported by LNG Industry.
LNG purchase
Engie has committed to buy about 0.9 million tpy of LNG from CCL on a free-on-board basis for a period of approximately 20 years, beginning in September 2021, per the terms of the SPA. The SPA’s LNG purchase price is based on the Henry Hub price plus a predetermined liquefaction cost.
Low carbon solutions
“We are pleased to build upon the long-term agreement we signed in 2021 with Engie, one of Europe’s energy leaders in low carbon solutions, to increase the volume and extend the term beyond 2040,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “This SPA reflects the importance of a diverse and reliable long-term supply of natural gas for Europe and reinforces the value the LNG market places in Cheniere’s commitment to climate and sustainability initiatives. We look forward to continuing to supply Engie with flexible, cleaner-burning LNG as part of our shared vision of a lower carbon future.”
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: LNG Industry
