Singapore-based trader Trafigura has agreed to purchase approximately 1 million tonnes per annum of LNG for 15 years from Cheniere Marketing, a subsidiary of the US natural gas producer Cheniere Energy.
Under the sale and purchase agreement signed on 16 January, the Singaporean company will buy the LNG on a free on board basis for a term of 15 years beginning in 2019.
The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee, the Houston-based firm informed.
“We are pleased to announce this long-term SPA with Trafigura, an important player in the global LNG market. We expect this SPA to help support Cheniere’s expansion plans, and we look forward to a successful long-term relationship with Trafigura as a customer,” said Jack Fusco, President and CEO.
Cheniere is currently developing, constructing, and operating LNG projects at Corpus Christi and at the Sabine Pass LNG terminal.