Cheniere Energy enters into 15-year supply agreement for Sabine Pass LNG project

November 29, 2023

(WO) – Cheniere Energy, Inc. and Cheniere Energy Partners, LP announced that Sabine Pass Liquefaction Stage V, LLC (“SPL Stage 5”) has entered into a long-term Integrated Production Marketing (“IPM”) gas supply agreement with ARC Resources U.S. Corp., a subsidiary of ARC Resources Ltd., a Canadian natural gas producer.

Sabine Pass LNG terminal. Source: Cheniere Energy

Under the IPM agreement, ARC Resources has agreed to sell 140,000 MMBtu per day of natural gas to SPL Stage 5 for a term of 15 years, commencing 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 Title Transfer Facility (“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. The LNG associated with this gas supply, approximately 0.85 MMtpa, will be marketed by Cheniere Marketing International LLP.

The SPL Expansion Project is being developed with a production capacity of up to approximately 20 MMtpa of total LNG capacity, inclusive of estimated debottlenecking opportunities.

Cheniere Marketing has also entered into an LNG sale and purchase agreement (“SPA”) with OMV Gas Marketing and Trading GMBH, a wholly-owned subsidiary of OMV AG. Under the SPA, Cheniere Marketing will supply OMV with up to 12 LNG cargoes per year, or approximately 0.85 MMtpa of LNG, at a TTF-linked price commencing in late 2029. The LNG will be sold to OMV on a delivered ex-ship basis at the Gate LNG Terminal in the Netherlands where OMV holds regasification capacity.

“Canadian natural gas can play a critical role in helping to meet growing global energy demand,” said Terry Anderson, President and Chief Executive Officer, ARC Resources. “Through this agreement, we are advancing our LNG strategy and delivering low-cost, low-emission natural gas to consuming regions in Europe – the first long-term arrangement of its kind for a Canadian producer. We are pleased to further our long-term partnership with Cheniere and bring more responsibly produced Canadian energy to the world.”



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