Cheniere Energy of the United States and QatarEnergy Sign a 4 Million Tonnes per Annum LNG Supply Agreement

en.Wedoany.com Reported - On October 22, U.S. liquefied natural gas exporter Cheniere Energy announced that its subsidiaries Sabine Pass Liquefaction and Corpus Christi Liquefaction have each signed long-term LNG sale and purchase agreements with QatarEnergy, totaling 4 million tonnes per annum of supply. The natural gas will be supplied from two export terminals in Louisiana and Texas, with deliveries planned to begin in 2031 and the contracts running through the end of 2054. Of this, 1 million tonnes per annum is contingent upon a final investment decision being reached for Phase 1 of the Sabine Pass expansion project.

The two agreements correspond respectively to the Sabine Pass LNG project and the Corpus Christi LNG project, each covering 2 million tonnes per annum of supply. QatarEnergy will take delivery of the LNG on a free-on-board basis, with the purchase price linked to the U.S. Henry Hub natural gas benchmark price plus a fixed fee. The parties did not disclose the total contract value or the specific level of the fixed fee.

The Sabine Pass project is located in Cameron Parish, Louisiana, where Cheniere is advancing an expansion of its existing liquefaction facilities. The expansion is planned to add up to approximately 20 million tonnes per annum of LNG production capacity, including incremental capacity from debottlenecking the existing facilities. Phase 1 of the project is planned to include Train 7, a boil-off gas reliquefaction unit and associated supporting facilities, with expected incremental liquefaction capacity of more than 6 million tonnes per annum. In May 2026, Cheniere signed a lump-sum turnkey EPC contract with Bechtel Energy for Phase 1 and authorized certain early engineering design and equipment procurement work.

The sale and purchase agreements were signed in Doha by Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of Qatar and President and CEO of QatarEnergy, and Jack Fusco, Chairman, President and CEO of Cheniere Energy, on behalf of the two parties. QatarEnergy said the U.S. LNG it purchases will be integrated into its global supply and trading portfolio.