Cheniere Energy signed a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Trafigura, one of the world’s largest commodities trading firms.
Under the agreement, Trafigura has agreed to purchase approximately 1 million tonnes per annum of LNG from Cheniere on a free on board (FOB) basis for a term of 15 years beginning in 2019.
The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee, Cheniere said in a statement.
Speaking of the deal, Cheniere’s CEO and president, Jack Fusco, said the company expects it will support Cheniere’s expansion plans.
Cheniere is developing, constructing, and operating liquefaction projects near Corpus Christi, Texas and at the Sabine Pass LNG terminal, respectively.
There are four 0.6-Bcfd liquefaction trains operating at Sabine Pass, currently the only such facility to ship US shale gas overseas, and a fifth is under construction and expected to enter service in mid-2019.