Energy News Beat
Cheneire said on Wendesday that the integrated production marketing (IPM) gas supply agreement between Cheniere Marketing and a unit of the Canadian producer is for 15 years.
Under the IPM agreement, Canadian Natural Resources has agreed to sell 140,000 MMBtu per day of natural gas to Cheniere Marketing.
The supplies are expected to start in 2030, while Canadian Natural Resources Limited is acting as guarantor of the IPM agreement.
Cheniere said the LNG supplies associated with this gas supply, approximately 0.85 million tonnes per annum (mtpa), will be marketed by Cheniere Marketing.
Moreover, Cheniere Marketing will pay an LNG-linked price for the natural gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.
According to Cheniere, the IPM agreement remains subject to the company making a positive final investment decision with respect to the Sabine Pass Liquefaction expansion project.
The SPL expansion project is being developed with an expected total production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities.
Cheniere’s Sabine Pass facility currently has a capacity of about 30 mtpa following the launch of the sixth train in February 2022.
In December 2023, Cheniere said it plans to build two instead of three liquefaction trains as part of the Sabine Pass Stage 5 expansion project with an optimized unit/cost footprint.
The project includes two large-scale liquefaction trains, each with a nameplate capacity of about 7 mtpa and a maximum production capacity of about 8.43 mtpa.
Cheniere plans to make a final investment decision to expand its Sabine Pass LNG plant in Louisiana in late 2026 or 2027, according to its management.
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The post Cheniere, Canadian Natural Resources pen gas supply deal appeared first on Energy News Beat.
