Cheniere and Galp sign long-term LNG sale and purchase agreement
Cheniere Energy, Inc. announced today that its subsidiary Cheniere Marketing, LLC, entered into a long-term liquefied natural gas (“LNG”) sale and purchase agreement with Galp Trading S.A., a subsidiary of Galp Energia, SGPS, S.A.
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 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.
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.
Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States.
Galp Energia is a Portuguese multinational integrated energy corporation, headquartered in Lisbon, Portugal.
