Equinor Inks Long-Term LNG Sale And Purchase Agreement With Cheniere

Cheniere Energy, Inc's LNG subsidiary, Cheniere Marketing, LLC, has entered into a long-term liquefied natural gas sale and purchase agreement with Equinor ASA EQNR.

Equinor has committed to buy roughly 1.75 million tonnes of LNG per year from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price plus a fixed liquefaction fee under the agreement.

Delivery of half of the volume associated with the agreement will commence in 2027, and delivery of the remaining half will commence at the end of this decade.

The term of the sale and purchase agreement is 15 years from the commencement of delivery of the full 1.75 mtpa of LNG volumes.

"This SPA is expected to provide further commercial support to the SPL Expansion Project, which we continue to rigorously develop in order to meet the world's growing demand for secure, long-term energy supplies and the economic and environmental benefits of Cheniere's LNG," commented Jack Fusco, Cheniere's President and Chief Executive Officer.

The SPL Expansion Project will feature up to three natural gas liquefaction trains, with a total production capacity of about 20 mtpa of LNG.

Price Action: LNG shares are trading higher by 1.43% at $151.06, and EQNR is higher by 0.20% at $30.19 on the last check Wednesday.