Houston-based Cheniere Energy announced on Wednesday that they have signed a 20-year liquefied natural gas supply deal with a subsidiary of Petronas, Malaysia's state-owned oil and natural gas company.
According to the terms of the deal, Cheniere's Sabine Pass (export) LNG facility in Louisiana will supply 1.1 million tonnes of LNG per year on a free on-board basis for a 20-year term following the date of first commercial delivery for the sixth natural gas liquefaction train.
Although the financial terms of the deal were not disclosed by any of the companies, Cheniere confirmed that the purchase price of the LNG would be indexed at the monthly Henry Hub price, plus a fee. They also confirmed that according to the terms of the deal, the point of sale is at the loading point and Petronas would be responsible for arranging the shipping.
Cheniere Energy’s CEO Jack Fusco, in a statement said that Petronas will be a foundation customer for the company’s sixth production unit planned at its Sabine Pass LNG facility in Louisiana.