Cheniere Partners announced that its subsidiary Sabine Pass Liquefaction has entered into a liquefied natural gas sale and purchase agreement with PETRONAS LNG Ltd. (“PLL”), a subsidiary of the Malaysian state-owned oil and gas company, PETRONAS.
PLL has agreed to purchase approximately 1.1 million tonnes per annum of LNG from Sabine Pass Liquefaction on a free on board basis for a term of 20 years following the date of first commercial delivery for the sixth natural gas liquefaction train (“Train 6”) at the Sabine Pass liquefaction project. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
“PETRONAS is one of the largest and most experienced participants in the global LNG market, and we are pleased to have it as our newest foundation customer at Sabine Pass, supporting Train 6,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “This 20-year agreement with Sabine Pass Liquefaction continues our momentum on Train 6, where early engineering, procurement, and site preparation activities have recently commenced ahead of a final investment decision. We expect this SPA to support our continued progress toward a final investment decision in 2019.”
PETRONAS Vice President of LNG Marketing & Trading, Ahmad Adly Alias said, “PETRONAS is pleased to enter into this long-term relationship with Cheniere Partners. With the addition of this new volume, it will enhance PETRONAS’ supply portfolio and further strengthen our position as a reliable global LNG portfolio player.”
The SPA is subject to certain conditions precedent, including but not limited to Sabine Pass Liquefaction making a final investment decision to construct Train 6 of the SPL Project.