US LNG exporting giant Cheniere said it has signed a new gas supply deal with compatriot EOG Resources for the proposed Stage 3 expansion at its Corpus Christi export plant in Texas.
The two firms signed a long-term gas agreement for the expansion project back in 2019.
Now, they have amended the integrated production marketing gas supply agreement.
Cheniere said in a statement on Thursday that de new deal extends the term and triples the volume of LNG associated with the natural gas supply.
Under the amended IPM transaction, EOG has agreed to sell 420,000 MMBtu of natural gas per day to CCL Stage III for a period of 15 years.
Also, Cheniere said that one third of the supply would start upon the completion of each of Trains 1, 4 and 5 of the Corpus Christi Stage III project.
Cheniere will own and market the LNG associated with this gas supply, or 2.25 mtpa, and EOG will receive a price based on the Platts Japan Korea Marker (JKM) for this gas.
In addition, the partners extended the previously executed gas supply agreement, under which EOG will sell 300,000 MMBtu per day to CCL Stage III at a price indexed to Henry Hub, to 15 years.
As a result, EOG will supply a total of 720,000 MMBtu of natural gas per day to CCL Stage III under the amended agreements for a 15-year period expected to commence upon start-up of the Corpus Christi Stage III project.
EOG will continue to sell 140,000 MMBtu of natural gas per day to Corpus Christi Liquefaction, LLC, which launched in 2020, until the start of the amended long-term agreements.
Cheniere owns and markets the LNG associated with this gas supply, or about 0.85 mtpa, and EOG receives a price based on JKM for this gas.
Step towards FID
“This transaction is expected to provide the remaining commercial support needed to move forward with Corpus Christi Stage III, and we are focused on completing the outstanding steps required in order to reach FID this year,” Cheniere’s CEO Jack Fusco said.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.
Under the expansion project, Cheniere plans to build up to seven mid-scale liquefaction trains with a total expected nominal production capacity of about 10 mtpa.
In December, Cheniered asked US energy regulators for an extension to construct the proposed expansion at its Corpus Christi plant until June 2027.