US LNG exporting giant Cheniere has agreed to supply more liquefied natural gas to France’s Engie as part of an amended deal revealed on Wednesday.
The two firms signed an 11-year deal in June last year for volumes from Cheniere’s Corpus Christi export plant in Texas.
Cheniere began delivering LNG under this deal in September 2021 and now the two firms agreed for more volumes and extended the duration of this contract, according to a Cheniere statement on Wednesday.
Under the amended SPA, Engie would purchase about 0.9 million tonnes per annum of LNG from the Corpus Christi project on a free-on-board basis for a term of approximately 20 years, Cheniere said.
Also, the Henry Hub-linked LNG deal includes a fixed liquefaction fee as well.
“We are pleased to build upon the long-term agreement we signed in 2021 with Engie, one of Europe’s energy leaders in low carbon solutions, to increase the volume and extend the term beyond 2040,” Cheniere’s CEO Jack Fusco, said.
“This SPA reflects the importance of a diverse and reliable long-term supply of natural gas for Europe,” he said.
This new deal comes just two days after Cheniere awarded a lump sum, turnkey, engineering, procurement and construction contract to compatriot Bechtel for the proposed Stage 3 expansion at its Corpus Christi plant.
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.
