Cheniere, Malaysia's Petronas Sign 20-Year LNG Pact
Houston-based Cheniere Energy Partners has signed a 20-year liquefied natural gas (LNG) supply deal with a subsidiary of Petronas, Malaysia's state-owned oil and natural gas company.
Per long-term pact, Petronas agreed to buy about 1.1 million tons a year from the Sabine Pass facility, according to a statement Tuesday. That’s about a quarter of the sixth plant’s capacity.
“Petronas is one of the largest and most experienced participants in the global LNG market, and we are pleased to have it as our newest foundation customer at Sabine Pass, supporting Train 6,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners.
“This 20-year agreement with Sabine Pass Liquefaction continues our momentum on Train 6, where early engineering, procurement, and site preparation activities have recently commenced ahead of a final investment decision. We expect this SPA to support our continued progress toward a final investment decision in 2019,” Jack added.
Petronas Vice President of LNG Marketing & Trading, Ahmad Adly Alias said, “Petronas is pleased to enter into this long-term relationship with Cheniere Partners. With the addition of this new volume, it will enhance Petronas' supply portfolio and further strengthen our position as a reliable global LNG portfolio player.”
The SPA is subject to certain conditions precedent, including but not limited to Sabine Pass Liquefaction making a final investment decision to construct Train 6 of the SPL Project.
Cheniere Partners, through its subsidiary, Sabine Pass Liquefaction, is developing, constructing, and operating natural gas liquefaction facilities at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast.