On Monday, Cheniere Energy, Inc. (LNG) revealed that its subsidiary, Cheniere Marketing, LLC, has signed a 20-year agreement to sell and purchase liquefied natural gas (LNG) with Galp Trading S.A., a subsidiary of Galp Energia.
According to this agreement, Galp Trading will annually buy approximately 0.5 million tonnes of LNG from Cheniere Marketing on a free-on-board basis.
Cheniere noted that the pricing formula will be linked to the Henry Hub price, supplemented by a fixed liquefaction fee.
Deliveries are anticipated to commence in the early 2030s, contingent on a favorable Final Investment Decision regarding the construction of Train Eight in the Sabine Pass Liquefaction Expansion Project, which aims to establish up to 20 million tonnes per annum of LNG capacity.
