Glencore secures LNG from Cheniere
US-based Cheniere Energy said October 25 that it signed a 13-year sale and purchase agreement to deliver LNG to Anglo-Swiss multinational commodity trading company Glencore.
Glencore agreed to purchase around 800,000 metric tons/year of LNG from Cheniere on a free-on-board basis for 13 years beginning in April 2023. The price is indexed to Henry Hub, the US benchmark for the price of natural gas, and includes a fixed liquefaction fee.
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The agreement “builds upon Cheniere’s commercial momentum” and represents an important contractual step ahead of a final investment decision (FID) on the third phase of its Corpus Christi export facility, said Cheniere CEO Jack Fusco.
“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,” he added.
An FID for the third phase is expected by next year.
Cheniere in early October signed a similar deal to supply 900,000 mt/yr of LNG annually to Chinese gas distributor ENN.
ENN said the deal was the first LNG sale and purchase agreement it had signed since restructuring its gas assets last year, and marked its first cooperation with Cheniere in the LNG field.
Deliveries to ENN begin in July 2022.