Energy Capital & Power

Cheniere Energy, Glencore Sign New Long-Term LNG Contract

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Houston-based Cheniere Energy and multinational commodity trading and mining company Glencore have signed a long-term sale and purchase agreement (SPA), under which the former will sell 0.8 million metric tons per year of Liquefied Natural Gas (LNG) to Glencore on a free-on-board basis. The 13-year contract will start from April 2023 and be indexed against the Henry Hub benchmark U.S. natural gas price.

“We are pleased to announce this long-term SPA with Glencore, one of the world’s largest producers and marketers of commodities and a significant player in the global LNG market,” said Jack Fusco, President and CEO of Cheniere Energy. “This agreement once again reinforces Cheniere’s position as a leading global LNG provider, and we look forward to a successful long-term relationship with Glencore.”

Cheniere Energy is currently preparing to take a Final Investment Decision (FDI) on the Stage 3 expansion of its Corpus Christi export plant located in San Patricio County, Texas. The facility currently has three liquefaction trains with a production capacity of 15 million tons of LNG per year. The expansion project would add up to seven mid-scale trains and approximately 10 million tons per year of production capacity.

“This SPA further builds upon Cheniere’s commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year,” added Fusco.

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Grace Goodrich

Grace Goodrich

Grace Goodrich is a Publications Editor at Energy Capital & Power, where she writes about the intersection of energy, policy and global finance in sub-Saharan Africa's fastest-growing economies. Grace produces our Africa Energy Series investment reports in Angola and Equatorial Guinea (2019), as well as co-authored African Energy Chamber: Road to Recovery (2021).