Cheniere Energy signs LNG sales deal with EDF

Cheniere Marketing International has signed a sales deal with Électricité de France (EDF) for the delivery of liquefied natural gas (LNG) from the Sabine Pass LNG terminal in Cameron Parish, Louisiana.

Under the terms of the deal, up to 26 LNG cargoes will be delivered to EDF’s Dunkerque LNG terminal in France, amounting to up to around 100 million MMBtus.

Deliveries for the cargoes will be done on an ex-ship basis through 2018.

Sales price for the LNG cargo units will be governed by the Dutch Title Transfer index (TTF), a natural gas pricing index in continental Europe.

The subsidiary of the US based energy giant has the rights to purchase excess of the LNG produced at the facility that is not required by other customers, under a sale and purchase agreement (SPA) with Sabine Pass Liquefaction.

Cheniere Marketing also has a similar deal with Corpus Christi Liquefaction which entitles it to excess LNG produced from Cheniere’s Corpus Christi liquefaction project in Texas, US.

The unit is entitled to obtain around nine million tonnes per annum (mtpa) of LNG from the nine liquefaction trains which are being developed at the two sites.

Besides the 26 cargo deal with EDF, Cheniere Marketing has sold a total of 42 cargoes till date for the Sabine Pass project.

Deliveries of the cargoes are expected to take place within the 2016 – 2018 time frame.

The company has signed agreement with buyers across Europe and Asia for a total of 68 cargoes amounting approximately 250 million MMBtus.