Cheniere Energy, Inc. announced that its subsidiary, Cheniere Marketing, LLC, has entered into a long-term Integrated Production Marketing (IPM) gas supply agreement with Canadian Natural Resources Limited.
Under the IPM agreement, a subsidiary of Canadian Natural Resources Limited has agreed to sell 140,000 MMBtu per day of natural gas to Cheniere Marketing for a term of 15 years, which is expected to commence in 2030. Canadian Natural Resources Limited is acting as guarantor of the IPM agreement. The liquefied natural gas (LNG) associated with this gas supply, approximately 0.85 million tonnes per annum (mtpa), will be marketed by Cheniere Marketing.
Cheniere Marketing will pay an LNG-linked price for the natural gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee. The IPM agreement is subject to Cheniere making a positive Final Investment Decision with respect to the Sabine Pass Liquefaction Expansion Project (SPL Expansion Project).
The SPL Expansion Project is being developed with an expected total production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities.
