Cheniere and Galp Sign Long-Term LNG Sale and Purchase Agreement
August 05 2024 - 6:30AM
Business Wire
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE: LNG)
announced today that its subsidiary Cheniere Marketing, LLC
(“Cheniere Marketing”), entered into a long-term liquefied natural
gas (“LNG”) sale and purchase agreement (“SPA”) with Galp Trading
S.A. (“Galp”), a subsidiary of Galp Energia, SGPS, S.A. (“Galp
Energia”).
Under the SPA, Galp has agreed to purchase approximately 0.5
million tonnes per annum (“mtpa”) of LNG for 20 years from Cheniere
Marketing on a free-on-board basis for a purchase price indexed to
the Henry Hub price, plus a fixed liquefaction fee. Deliveries are
expected to commence in the early 2030s and are subject to, among
other things, a positive Final Investment Decision with respect to
the second train (“Train Eight”) of the Sabine Pass Liquefaction
Expansion Project (“SPL Expansion Project”). The SPA includes a
limited number of early cargoes to be purchased by Galp prior to
the start of Train Eight.
“We are pleased to enter into this long-term agreement with
Galp, a leader across Iberia’s energy sector, which reinforces the
critical role US natural gas is expected to play in Europe’s energy
mix into the second half of this century,” said Jack Fusco,
Cheniere’s President and Chief Executive Officer. “We look forward
to providing our flexible, reliable and cleaner burning LNG to Galp
under this new long-term agreement. This SPA is expected to provide
further support for the SPL Expansion Project, and demonstrates
continued momentum as we progress development of the project.”
The SPL Expansion Project
The SPL Expansion Project is being developed for up to
approximately 20 mtpa of LNG capacity, inclusive of estimated
debottlenecking opportunities. In February 2024, certain
subsidiaries of Cheniere Energy Partners, L.P. (NYSE: CQP)
submitted an application to the Federal Energy Regulatory
Commission for authorization to site, construct and operate the SPL
Expansion Project, as well as an application to the Department of
Energy requesting authorization to export LNG to Free-Trade
Agreement (“FTA”) and non-FTA countries.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
LNG in the United States, reliably providing a clean, secure, and
affordable solution to the growing global need for natural gas.
Cheniere is a full-service LNG provider, with capabilities that
include gas procurement and transportation, liquefaction, vessel
chartering, and LNG delivery. Cheniere has one of the largest
liquefaction platforms in the world, consisting of the Sabine Pass
and Corpus Christi liquefaction facilities on the U.S. Gulf Coast,
with total production capacity of approximately 45 mtpa of LNG in
operation and an additional 10+ mtpa of expected production
capacity under construction. Cheniere is also pursuing liquefaction
expansion opportunities and other projects along the LNG value
chain. Cheniere is headquartered in Houston, Texas, and has
additional offices in London, Singapore, Beijing, Tokyo, and
Washington, D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024, filed with the Securities and
Exchange Commission.
About Galp Energia
Galp Energia is a Portuguese multinational integrated energy
corporation, headquartered in Lisbon, Portugal. Galp Energia is
engaged in every aspect of the oil and natural gas supply, from
exploration and production; refining, trading, logistics and
retailing and developing renewable energy solutions such as
advanced biofuels, renewable hydrogen and renewable power
generation.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements” within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere’s financial and operational guidance, business strategy,
plans and objectives, including the development, construction and
operation of liquefaction facilities, (ii) statements regarding
regulatory authorization and approval expectations, (iii)
statements expressing beliefs and expectations regarding the
development of Cheniere’s LNG terminal and pipeline businesses,
including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third-parties, (v) statements
regarding potential financing arrangements, (vi) statements
regarding future discussions and entry into contracts, (vii)
statements relating to Cheniere’s capital deployment, including
intent, ability, extent, and timing of capital expenditures, debt
repayment, dividends, share repurchases and execution on the
capital allocation plan, and (viii) statements relating to our
goals, commitments and strategies in relation to environmental
matters. Although Cheniere believes that the expectations reflected
in these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Cheniere’s actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Cheniere’s periodic reports that are filed with and
available from the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required under the securities laws, Cheniere does not assume a duty
to update these forward-looking statements.
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Cheniere Energy, Inc. Investors
Randy Bhatia, 713-375-5479 Frances Smith, 713-375-5753 Media Relations Eben Burnham-Snyder, 713-375-5764
Bernardo Fallas, 713-375-5593
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