Cheniere and EOG Resources Announce Long-Term Gas Supply Agreements
September 16 2019 - 4:05PM
Business Wire
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG)
announced today that its subsidiaries, Corpus Christi Liquefaction,
LLC and Cheniere Corpus Christi Liquefaction Stage III, LLC, have
entered into long-term gas supply agreements (“GSA”) with EOG
Resources, Inc. (“EOG”) (NYSE: EOG).
Under the GSAs, EOG has agreed to sell natural gas to Cheniere
over a period of approximately 15 years beginning in early 2020,
with the quantity starting at 140,000 MMBtu per day and increasing
to 440,000 MMBtu per day. The LNG associated with 140,000 MMBtu per
day of this gas supply, or approximately 0.85 million tonnes per
annum (“mtpa”), will be owned and marketed by Cheniere and EOG will
receive a price based on the Platts Japan Korea Marker (JKM) for
this gas. The remaining 300,000 MMBtu per day will be sold by EOG
to Cheniere at a price indexed to Henry Hub.
“We are pleased to partner with EOG, one of the largest
independent natural gas producers in the United States, on our
second Integrated Production Marketing (“IPM”) transaction which is
expected to support Corpus Christi Stage III,” said Corey Grindal,
Cheniere’s Senior Vice President, Gas Supply. “The IPM commercial
structure leverages our world-scale infrastructure platform and
capabilities in Corpus Christi, offering domestic natural gas
producers efficient access to global LNG prices and long-term flow
assurance, while providing Cheniere with reliable delivery of
natural gas and commercial support for growth.”
“We look forward to working with Cheniere, the leading U.S. LNG
provider, to expand into international natural gas markets where
global demand is expected to significantly increase for years to
come,” said D. Lance Terveen, Senior Vice President, Marketing of
EOG. “Adding gas sales agreements linked to LNG prices supports
EOG’s portfolio approach to marketing our growing production of
low-cost natural gas. These agreements further diversify our access
to customers across multiple end markets in order to maximize our
natural gas price realizations.”
A portion of the transaction is subject to certain conditions
precedent, including a positive final investment decision on
Cheniere’s Corpus Christi Stage III project. The Corpus Christi
Stage III project is being developed to include up to seven
midscale liquefaction trains with a total expected aggregate
nominal production capacity of approximately 9.5 mtpa. The Corpus
Christi Stage III project received a positive Environmental
Assessment from the Federal Energy Regulatory Commission in March
2019 and is anticipated to receive all remaining regulatory
approvals by the end of 2019.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
liquefied natural gas (LNG) in the United States, reliably
providing a clean, secure, and affordable solution to the growing
global need for natural gas. Cheniere is a full-service LNG
provider, with capabilities that include gas procurement and
transportation, liquefaction, vessel chartering, and LNG delivery.
Cheniere has one of the largest liquefaction platforms in the
world, consisting of the Sabine Pass and Corpus Christi
liquefaction facilities on the U.S. Gulf Coast, with expected
aggregate adjusted nominal production capacity of up to
approximately 45 million tonnes per annum of LNG operating or under
construction. Cheniere is also pursuing liquefaction expansion
opportunities and other projects along the LNG value chain.
Cheniere is headquartered in Houston, Texas, and has additional
offices in London, Singapore, Beijing, Tokyo, and Washington,
D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended June 30, 2019, filed with the Securities and Exchange
Commission.
About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil
and natural gas exploration and production companies in the United
States with proved reserves in the United States, Trinidad, and
China. To learn more visit www.eogresources.com.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements” within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere’s financial and operational guidance, business strategy,
plans and objectives, including the development, construction and
operation of liquefaction facilities, (ii) statements regarding
expectations regarding regulatory authorizations and approvals,
(iii) statements expressing beliefs and expectations regarding the
development of Cheniere’s LNG terminal and pipeline businesses,
including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third parties, (v) statements
regarding potential financing arrangements, and (vi) statements
regarding future discussions and entry into contracts. Although
Cheniere believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Cheniere’s actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Cheniere’s periodic reports that are filed with and
available from the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required under the securities laws, Cheniere does not assume a duty
to update these forward-looking statements.
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Cheniere Energy, Inc. Investors
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