Cheniere Energy, Inc. (Cheniere) (NYSE American: LNG) announced today that its subsidiary Cheniere Marketing, LLC (Cheniere Marketing) has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Vitol Inc. (Vitol).
Under the SPA, Vitol has agreed to purchase approximately 0.7 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis for a term of approximately 15 years beginning in 2018. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
“We are pleased to announce this long-term SPA with Vitol, one of the fastest growing players in the global LNG market,” said Jack Fusco, Cheniere’s President and CEO. “This agreement continues Cheniere’s commercial momentum and supports our growth plans, while demonstrating the value LNG buyers place on Cheniere’s unique ability to offer flexible solutions tailored to the needs of LNG customers worldwide.”
Russell Hardy, Group CEO at Vitol, said, “We are delighted to be working with Cheniere, a pioneer in U.S. liquefaction. Vitol is committed to the long-term development of the LNG market. We believe that LNG has an important role to play in the future energy mix and that its evolution will require a more flexible and tradeable LNG market.”