Cheniere and Vitol Sign 15-Year LNG Sale and Purchase Agreement
September 17 2018 - 5:00AM
Business Wire
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG)
announced today that its subsidiary Cheniere Marketing, LLC
(“Cheniere Marketing”) has entered into a liquefied natural gas
(“LNG”) sale and purchase agreement (“SPA”) with Vitol Inc.
(“Vitol”). Under the SPA, Vitol has agreed to purchase
approximately 0.7 million tonnes per annum of LNG from Cheniere
Marketing on a free on board basis for a term of approximately 15
years beginning in 2018. The purchase price for LNG is indexed to
the monthly Henry Hub price, plus a fee.
“We are pleased to announce this long-term SPA with Vitol, one
of the fastest growing players in the global LNG market,” said Jack
Fusco, Cheniere’s President and CEO. “This agreement continues
Cheniere’s commercial momentum and supports our growth plans, while
demonstrating the value LNG buyers place on Cheniere’s unique
ability to offer flexible solutions tailored to the needs of LNG
customers worldwide.”
Russell Hardy, Group CEO at Vitol, said, “We are delighted to be
working with Cheniere, a pioneer in U.S. liquefaction. Vitol is
committed to the long-term development of the LNG market. We
believe that LNG has an important role to play in the future energy
mix and that its evolution will require a more flexible and
tradeable LNG market.”
About Cheniere
Cheniere Energy, Inc., a Houston-based energy company primarily
engaged in LNG-related businesses, owns and operates the Sabine
Pass LNG terminal in Louisiana. Directly and through its
subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing,
constructing, and operating liquefaction projects near Corpus
Christi, Texas and at the Sabine Pass LNG terminal, respectively.
Cheniere is also exploring a limited number of opportunities
directly related to its existing LNG business.
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, 2018, filed with the Securities and Exchange
Commission.
About Vitol
Vitol is an energy and commodities company; its primary business
is the trading and distribution of energy products globally – it
trades over seven million barrels per day of crude oil and products
and, at any time, has 250 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals,
leading industrial and chemical companies and the world’s largest
airlines. Founded in Rotterdam in 1966, today Vitol serves clients
from some 40 offices worldwide and is invested in energy assets
globally including: circa 18mm3 of storage across seven continents,
480kbpd of refining capacity and 5,000 service stations across
Africa, Australia, Eurasia and in Northwest Europe. Revenues in
2017 were $181 billion.
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 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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version on businesswire.com: https://www.businesswire.com/news/home/20180917005192/en/
Cheniere Energy, Inc.InvestorsRandy
Bhatia, 713-375-5479Megan Light, 713-375-5492orMedia RelationsEben Burnham-Snyder,
713-375-5764
Cheniere Energy (AMEX:LNG)
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