Cheniere Signs Long-Term Agreement with Canadian Company for Integrated Production Marketing

Cheniere Energy, Inc., a prominent LNG producer in the United States, has recently announced a significant long-term gas supply agreement with Canadian Natural Resources Limited. The agreement entails an Integrated Production Marketing (IPM) deal, where a subsidiary of Canadian Natural Resources Limited will supply 140,000 MMBtu per day of natural gas to Cheniere Marketing, a subsidiary of Cheniere, for a duration of 15 years starting in 2030. Canadian Natural Resources Limited will serve as the guarantor for this agreement.

In addition to the gas supply, approximately 0.85 million tonnes per annum (mtpa) of liquefied natural gas (LNG) will be marketed by Cheniere Marketing as part of the deal. The pricing for the natural gas will be LNG-linked, based on the Platts Japan Korea Marker (JKM), with deductions for fixed LNG shipping costs and a fixed liquefaction fee. The IPM agreement is contingent on Cheniere making a positive Final Investment Decision related to the Sabine Pass Liquefaction Expansion Project (SPL Expansion Project).

The SPL Expansion Project aims to enhance liquefaction capabilities, with a projected total production capacity of around 20 mtpa of LNG, considering possible debottlenecking options. Cheniere’s impressive liquefaction facilities consist of the Sabine Pass and Corpus Christi facilities on the U.S. Gulf Coast, offering a total production capacity exceeding 46 mtpa of LNG in operation, and over 8 mtpa of expected production capacity under construction. The company is actively exploring liquefaction expansion prospects and other ventures within the LNG value chain.

Cheniere Energy, headquartered in Houston, Texas, is recognized for delivering clean, secure, and cost-effective LNG solutions to address the escalating global demand for natural gas. With a comprehensive range of services, including gas procurement, liquefaction, vessel chartering, and LNG delivery, Cheniere is a leading player in the LNG market. In addition to its U.S. operations, Cheniere has offices in key international locations such as London, Singapore, Beijing, Tokyo, Dubai, and Washington, D.C.

While the company remains optimistic about its financial and operational outlook, it acknowledges the presence of assumptions, risks, and uncertainties that may impact actual results. Cheniere emphasizes the importance of monitoring regulatory compliance, potential financing arrangements, and capital deployment strategies regarding its LNG terminal and pipeline enterprises. Through periodic updates provided to the Securities and Exchange Commission, Cheniere aims to maintain transparency concerning its business operations and financial performance.

As part of its commitment to environmental stewardship, Cheniere continues to align its goals, commitments, and strategies with environmental considerations. The company values sustainability and is dedicated to upholding environmental standards in its operations. Despite the inherent uncertainties associated with the industry, Cheniere remains focused on delivering innovative solutions and driving growth in the LNG sector.