Current LNG Stock Info

Cheniere Energy, Inc. (ticker: LNG) and its subsidiary Cheniere Marketing, LLC have entered into a LNG sale and purchase agreement (SPA) with Trafigura Pte Ltd., a Geneva-based independent trader of oil and petroleum products. Trafigura’s LNG team is based in Houston, Geneva and Singapore.

Trafigura has agreed to purchase approximately 1 million tons per annum of LNG from Cheniere Marketing on a free on-board basis for a term of 15 years beginning in 2019. 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 Trafigura, an important player in the global LNG market. We expect this SPA to help support Cheniere’s expansion plans, and we look forward to a successful long-term relationship with Trafigura as a customer,” said Cheniere President and CEO Jack Fusco.

“We are pleased to have signed a long-term SPA with Cheniere who is a growing and reliable producer of LNG. This deal will support our LNG infrastructure platform and provide further security of supply to our customers,” Head of LNG for Trafigura, Hadi Hallouche, told Oil & Gas 360®.

LNG export contract terms start making waves

Royal Dutch Shell plc (ticker: RDS.A) and Kuwait Petroleum Corp. signed a 15-year LNG contract in Dec., covering 2-3 million metric tons of LNG a year.

Additionally, Dominion Energy (ticker: D) negotiated 20-year contracts with ST Cove Point, a JV of Sumitomo Corporation and Tokyo Gas, and with GGULL, the U.S. affiliate of GAIL (India) LTD. GAIL, by itself, has decided to source up to 5.8 million tons of LNG from Cheniere and Dominion.

China recently started a project with FortisBC, where the Canadian company moved LNG via container ships – this pilot program works around Canada’s lack of export terminals. About 17 metric tons of LNG was transported from FortisBC’s Tilbury plant in Vancouver to China.

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