Cheniere Energy, Inc. has announced that its subsidiary, Cheniere Marketing, LLC, has signed a long-term liquefied natural gas sale and purchase agreement with BASF. Under the agreement, BASF will purchase up to approximately 0.8 million tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis.
The purchase price will be indexed to the Henry Hub price, with a fixed liquefaction fee. Deliveries will begin in mid-2026 and will increase to approximately 0.8 mtpa upon the start of commercial operations of the Sabine Pass Liquefaction Expansion Project. The SPA is set to run through 2043.
Cheniere’s executive vice president and chief commercial officer, Anatol Feygin, stated that the agreement demonstrates the crucial role of US natural gas in providing long-term secure and affordable energy for Europe. BASF’s chief financial officer, Dr. Dirk Elvermann, added that the deal will help ensure a reliable supply of natural gas at competitive terms as BASF works towards its goal of net zero CO2 emissions by 2050. The Sabine Pass Liquefaction Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity.
For more information visit www.cheniere.com