Cheniere Energy Inc. said one of its subsidiaries has entered into a liquefied natural gas (LNG) sale and purchase agreement with Singapore-based Trafigura Pte Ltd., a global trading company that deals in physical commodities, including oil and refined products.
On Tuesday, Houston-based Cheniere said Trafigura has agreed to purchase about 1 million metric tons/year (mmty) of LNG from Cheniere Marketing LLC on a free on board basis for over 15 years beginning in 2019. The purchase price for the LNG is to be indexed to the monthly Henry Hub price, plus a fee.
Cheniere CEO Jack Fusco called Trafigura "an important player in the global LNG market," and added that his company expects the agreement would support Cheniere's plans for expansion. "With a flexible solution tailored to the needs of our customer, this agreement demonstrates Cheniere's capabilities as a leading global LNG supplier," he said.
Projects under development by Cheniere include a fourth train at its Sabine Pass LNG terminal in Louisiana, and an LNG export terminal in Corpus Christi, TX. Last month, Cheniere asked the Federal Energy Regulatory Commission for permission to install a third feed gas pipeline meter facility at Sabine Pass.
Meanwhile, Politico reported Tuesday that Taiwan plans to begin importing LNG from the United States. According to the report, Taiwan’s Shen Jong-chin, minister of economic affairs, said state-owned producer CPC Corp. has signed a 20-year contract to import U.S. LNG beginning this year. Additional details of were not available.
With LNG imports, Taiwan “can efficiently solve the problem of [trade] deficits between Taiwan and the U.S.," Shen said, according to the report. Data from the U.S. Census Bureau shows Taiwan is the 10-largest trading partner with the United States.