Cheniere signs LNG supply deal with Engie

Cheniere Marketing International, the wholly-owned subsidiary of Cheniere Energy, has signed an agreement to supply up to 12 liquefied natural gas (LNG) cargoes a year to French electric utility company Engie.

Under the terms of the five-year sale and purchase agreement (SPA), Cheniere will deliver the cargoes on an ex-ship basis from 2018 to 2023 primarily to the Montoir de Bretagne LNG re-gasification terminal in France from the Sabine Pass and Corpus Christi LNG terminals.

Cheniere Marketing stated that it will sell the volumes sourced from its global LNG supply portfolio at contract prices linked to Northern European indices.

The LNG portfolio of Cheniere is expected to have about nine million tonnes per annum (mtpa) of LNG on a combined basis, available from the nine liquefaction trains that are being developed at Sabine Pass and Corpus Christi.

Cheniere chairman and CEO Charif Souki: "This SPA with Engie furthers our strategy of supplying LNG to European markets and diversifies our marketing portfolio with sales tied to Northern European price indices.

"Deliveries are expected to be made to the Montoir de Bretagne LNG terminal or to alternative delivery points as determined by our customer."

According to Engie, the LNG can alternatively be shipped to other LNG terminals in Europe.

Engie Global Gas and LNG business line executive vice-president Pierre Chareyre said: "Importing US LNG will participate to strengthen the security of supply of Europe."

In September, Cheniere agreed to deliver LNG cargoes on an ex-ship basis from the Sabine Pass LNG terminal to Électricité de France.

The agreement covered the delivery of up to 24 cargoes, or up to about 89 million MMBtus total, from 2017 through 2018.