Cheniere pens Corpus Christi deal with ARC Resources

US LNG exporter Cheniere has signed a deal with a unit of Canada’s ARC Resources under which the latter will supply natural gas to the Corpus Christi expansion project in Texas.

ARC Resources U.S. has agreed to sell 140,000 MMBtu per day of natural gas to Corpus Christi Stage III, according to a Cheniere statement on Wednesday.

Also, the integrated production marketing gas supply agreement is for 15 years and would start with commercial operations of Train 7 of the Corpus Christi expansion project, Cheniere said.

Cheniere said it would market the LNG supplies associated with this deal, or approximately 0.85 million tonnes per annum.

In addition, Cheniere will pay ARC U.S. an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.

The deal remains subject to Cheniere making a positive final investment decision to construct the Corpus Christi Stage III project.

The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.

Under the expansion, Cheniere plans to add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.

Cheniere’s CEO Jack Fusco welcomed this agreement with one of Canada’s largest natural gas producers, enabling Canadian natural gas to reach international markets.

“This IPM agreement with ARC U.S. is expected to provide additional support to the Corpus Christi Stage III project, which we expect to reach FID this summer,” he said.

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