As global energy markets continue to navigate the volatility, long-term commitments are becoming the ultimate currency, which U.S.-headquartered energy player Cheniere Energy’s liquefied natural gas (LNG) deal with Brazil’s state-owned Petrobras hammers home, as it binds U.S. Gulf Coast liquefaction terminals to Brazil’s energy grid for more than two decades.
Cheniere Energy’s subsidiary, Cheniere Marketing, has entered into a multi-year LNG sale and purchase agreement (SPA) with Petrobras.
As a result, the Brazilian giant has agreed to purchase approximately 0.8 million tonnes per annum of LNG from Cheniere Marketing on a free-on-board (FOB) basis for 22 years.
Jack Fusco, Cheniere’s Chairman, President and Chief Executive Officer, commented: “This agreement once again reinforces Cheniere’s position as a leading global LNG provider, while providing additional commercial support and fixed fee cash flow visibility to underpin further brownfield liquefaction capacity growth.
“We look forward to providing our secure and reliable LNG to Petrobras into the second half of this century under this new long-term agreement.”
This deal comes shortly after Cheniere reached substantial completion at the third stage of its Corpus Christi Liquefaction (CCL) facility in Texas, when Bechtel turned over care, custody, and control of Train 7 to the firm.
Meanwhile, Petrobras continues to augment its energy arsenal, as illustrated by its recent discovery of hydrocarbons in the Morpho well, located in deep waters offshore Amapá within the Amazon River mouth sedimentary basin on the Brazilian Equatorial Margin.