Cheniere Energy, BASF Sign Long-Term LNG Sale And Purchase Deal

(RTTNews) - LNG producer Cheniere Energy, Inc. (LNG) announced Tuesday that its unit Cheniere Marketing, LLC has entered into a long-term liquefied natural gas sale and purchase agreement or SPA with German chemical company BASF (BASFY.PK, BFA.L).

Under the SPA, BASF has agreed to purchase up to around 0.8 million tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee.

Deliveries will commence in mid-2026 and will increase to approximately 0.8 mtpa upon the start of commercial operations of Train Seven, subject to a positive Final Investment Decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project or SPL Expansion Project in Louisiana.

The term of the SPA extends through 2043.

The company noted that the SPL Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity.