Cheniere Energy Inks Long-Term LNG Deal With BASF

Cheniere Energy Inc LNG disclosed that its subsidiary, Cheniere Marketing, LLC penned a long-term liquefied natural gas sale and purchase agreement with BASF SE BASFY.

Per the terms, BASF will purchase up to 0.8 million tonnes per annum (mtpa) of liquefied natural gas on a free-on-board (FOB) basis from Cheniere Marketing.

The purchase price is indexed to the Henry Hub price plus a fixed liquefaction fee. 

The liquefied natural gas deliveries will start in mid-2026. 

Subject to a positive Final Investment Decision (FID) concerning the first train of the Sabine Pass Liquefaction Expansion Project in Louisiana, the deliveries will increase to around 0.8 mtpa upon the start of commercial operations of Train Seven. 

The term of the sale and purchase agreement will extend through 2043.

"This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe's key industrial end-use consumers to ensure stability of its supply chain," said Anatol Feygin, Executive Vice President and Chief Commercial Officer. 

In June, Cheniere Marketing inked a long-term LNG sale and purchase agreement with ENN LNG (Singapore) Pte. Ltd.

Earlier this month, LNG reported Q2 EPS of $5.61, beating the consensus of $2.37 and sales of $4.10 billion, missing a $5.2 billion estimate. 

As of June 30, 2023, total consolidated available liquidity stood at around $12.7 billion.

Price Action: LNG shares are trading higher by 1.84% at $167.06 on the last check Tuesday.