Cheniere and EOG Resources Announce Long-Term Gas Supply Agreements
September 16 2019 - 4:58PM
Dow Jones News
By Stephen Nakrosis
Two subsidiaries of Cheniere Energy, Inc. (LNG), entered
long-term gas supply agreements with EOG Resources, Inc. (EOG), the
companies said Monday.
Under the terms of the deal, EOG will sell natural gas to
Cheniere subsidiaries Corpus Christi Liquefaction, LLC, and
Cheniere Corpus Christi Liquefaction Stage III, LLC, beginning
early next year. The deal, which will last about 15 years, will see
EOG initially selling about 140,000 MMBtu per day, with that amount
rising to 444,000 MMBtu per day.
The companies said 140,000 MMBtu per day of the gas "will be
owned and marketed by Cheniere and EOG will receive a price based
on the Platts Japan Korea Marker for this gas." The remaining gas
will be sold to Cheniere at a price indexed to Henry Hub, the
companies said.
The companies said part of the transaction is subject to certain
conditions, including "a positive final investment decision on
Cheniere's Corpus Christi Stage III project." The Federal Energy
Regulatory Commission gave the project a positive Environmental
Assessment in March, and all remaining regulatory approvals are
expected by the end of this year.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
September 16, 2019 16:43 ET (20:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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