Cheniere, OMV seal long-term LNG supply deal

US LNG exporting giant Cheniere has signed a long-term deal with Austrian energy firm OMV to supply the latter with liquefied natural gas. OMV will receive the volumes via the Gate LNG import terminal in the Dutch port of Rotterdam where it holds capacity.

According to separate statements by the two firms, Cheniere Marketing will supply OMV Gas Marketing and Trading with up to 12 LNG cargoes per year, or about 0.85 mtpa of LNG, at a TTF-linked price starting in late 2029.

The two firms did not reveal the duration of the sales and purchase agreement.

Cheniere’s executive VP and CCO, Anatol Feygin, said this deal deepens their relationship further since Cheniere first supplied OMV in 2018.

“This long-term agreement between Cheniere and OMV will enhance Cheniere’s ability to supply LNG to Europe, where energy security has never been more important,” he said.

Berislav Gaso, executive president for OMV Energy business, said the company has made “another significant step in diversifying and safeguarding alternative non-Russian gas supply sources for its customers in the long-term.”

Earlier this year, UK-based energy giant BP signed a 10-year deal with OMV to supply the latter with LNG via the Gate terminal, owned by Gasunie and Vopak.

Under this deal, BP will supply up to 1 mtpa of LNG per year from its global portfolio from 2026.

Sabine Pass expansion deal

In connection with the OMV deal, Cheniere also announced that Sabine Pass Liquefaction Stage V has entered into a long-term integrated production marketing gas supply agreement with ARC Resources U.S. Corp., a unit of Canada’s natural gas producer ARC Resources.

Under the deal, ARC Resources has agreed to sell 140,000 MMBtu per day of natural gas to SPL Stage 5 for a term of 15 years, starting with commercial operations of the first train (train 7) of the Sabine Pass liquefaction expansion project.

SPL Stage 5 will pay ARC Resources an LNG-linked price for its gas, based upon the Dutch TTF price, after deductions for a fixed regasification fee, fixed LNG shipping costs, and a fixed liquefaction fee.

The IPM agreement is subject to, among other things, a positive final investment decision with respect to train 7.

Also, LNG associated with this gas supply, about 0.85 mtpa, will be marketed by Cheniere Marketing International, it said.

“This is the second long-term IPM agreement between Cheniere and ARC Resources, and further progresses the commercialization of the SPL expansion project,” Jack Fusco, Cheniere’s president and CEO, said.

“This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important,” he said.

Sabine Pass currently has a capacity of about 30 mtpa following the launch of the sixth train in February last year, while Cheniere’s three-train Corpus Christi plant in Texas can produce about 15 mtpa of LNG and is undergoing expansion.

Earlier this year, Cheniere initiated the pre-filing review process with the US FERC for the Sabine Pass Stage 5 expansion project.

The project will include up to three large-scale liquefaction trains, each with a production capacity of about 6.5 mtpa of LNG, a boil-off-gas (BOG) re-liquefaction unit with a production capacity of 0.75 mtpa of LNG, and also two 220,000-cbm LNG storage tanks.

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