Cheniere, Trafigura Ink 15-Year SPA

US LNG developer Cheniere Energy announced January 16 its subsidiary, Cheniere Marketing, has reached a 15-year sales and purchase agreement (SPA) with commodities trader Trafigura for 1mn metric tons/year of LNG.

Trafigura will purchase the LNG on a free on board basis beginning in 2019 at a purchase price linked 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,” Cheniere CEO Jack Fusco said. “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.”

Cheniere has completed and commissioned the first four trains at its Sabine Pass terminal in Louisiana and expects to complete the first two trains at its Corpus Christi terminal in Texas in 2019.