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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