Cheniere and BASF sign long-term LNG sale and purchase agreement

Cheniere Energy (LNG) announced that Cheniere’s subsidiary, Cheniere Marketing , has entered into a long-term liquefied natural gas sale and purchase agreement with (BASFY). Under the SPA, BASF has agreed to purchase up to approximately 0.8M tons per annum or mtpa of LNG from Cheniere Marketing on a free-on-board FOB basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026 and, subject to a positive Final Investment Decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project in Louisiana, will increase to approximately 0.8 mtpa upon the start of commercial operations of Train Seven. The term of the SPA extends through 2043. “We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure stability of its supply chain…” The SPL Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, (CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.