Cheniere Energy has signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with BASF SE. Under the SPA, BASF will purchase up to approximately 0.8 million tonnes per annum (mtpa) of LNG from Cheniere on a free-on-board (FOB) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. The SPA has a term of 20 years and is expected to commence deliveries in 2026. The LNG will be supplied from Cheniere’s Corpus Christi LNG export facility.
Cheniere’s President and Chief Executive Officer, Jack Fusco, said that the agreement demonstrates the strong demand for LNG from Europe and highlights Cheniere’s position as a leading provider of clean, reliable LNG to global markets.
BASF’s Chairman of the Board of Executive Directors, Martin Brudermüller, said that the SPA secures long-term access to competitive LNG supplies for BASF’s European operations. Brudermüller added that LNG is an essential part of BASF’s energy mix and will enable the company to reduce its reliance on coal and support its sustainability goals.
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