Cheniere Energy, Inc. and BASF signs an SPA for LNG; the contract ends in 2043

Cheniere Energy, Inc. recently entered into a long-term sale and purchase agreement (SPA) with BASF through its subsidiary, Cheniere Marketing, LLC. Under this agreement, BASF will buy up to 0.8 million tonnes of liquefied natural gas (LNG) annually on a free-on-board (FOB) basis. This means that Cheniere will bear the responsibility and costs until the LNG is loaded onto the shipping vessel. The purchase will be tied to the Henry Hub price, supplemented by a fixed fee for liquefaction.

The deliveries are scheduled to start in mid-2026, eventually reaching the full 0.8 million tonnes once the Sabine Pass Liquefaction Expansion Project in Louisiana becomes operational. The agreement will remain in place until 2043.

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Anatol Feygin from Cheniere expressed his enthusiasm for this partnership. He stressed the strategic role of U.S. natural gas in providing a dependable and sustainable energy source for Europe. This deal aids European industries like BASF in solidifying their supply chains.

For BASF, Dr. Dirk Elvermann highlighted this agreement's importance in diversifying their energy assets amidst shifts in the European gas market. BASF's overarching aim is to cut down its dependence on fossil fuels, targeting net-zero CO2 emissions by 2050 while ensuring a consistent and cost-effective natural gas supply.

The Sabine Pass Liquefaction Expansion Project, designed to house up to 20 million tonnes of LNG, is presently in the pre-filing review phase with the Federal Energy Regulatory Commission.

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Cheniere Energy, Inc. stands as a leading LNG producer and exporter in the U.S., managing one of the world's most expansive liquefaction platforms. With the Sabine Pass and Corpus Christi facilities on the U.S. Gulf Coast, Cheniere is not only maintaining its current production levels but also actively looking for expansion avenues in the LNG sector.

As per Procurement Resource, Cheniere Energy has gotten into a Sales and Purchase contract with BASF germane to liquefied natural gas (LNG). Per the contract BASF’s annual purchase of Cheniere Marketing’s LNG would be up to 0.8 million tonnes annually on FOB. The deliveries are expected to mark initiation in the mid of 2026 contingent on the completion of Sabine Pass Liquefaction Expansion Project, Louisiana.