Cheniere Strikes Long-Term LNG Supply Deal with Chevron

(Reuters) — Cheniere Energy Inc. said on Wednesday two of its units would sell 2 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to oil major Chevron Corp. until 2042.

Sanctions imposed on Russia in response to its invasion of Ukraine have exacerbated a global natural gas shortage, boosting demand for U.S. LNG exporters.

Under the deal, Chevron will buy about 1 MTPA of LNG each from Cheniere's Sabine Pass Liquefaction (SPL) and Cheniere Marketing, the U.S. LNG exporter said.

Cheniere said the SPL deliveries would begin in 2026 and reach the full capacity in 2027, while Cheniere Marketing deliveries will begin in 2027.

"These long-term sale and purchase agreements underscore the growing demand for reliable, cleaner burning LNG supply beyond 2040 and further support investment in additional LNG capacity beyond our Corpus Christi Stage III Project," said Anatol Feygin, Cheniere's executive vice president and chief commercial officer. 

Earlier in the day, Cheniere said it would go ahead with a stage 3 expansion of its Corpus Christi LNG export plant in Texas. 

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