Cheniere inks gas supply deal for Corpus Christi LNG with Tourmaline Oil
A subsidiary of U.S. LNG export project developer Cheniere has signed a long-term gas supply deal with Canada’s largest natural gas producer Tourmaline Oil.
Tourmaline will supply gas to a planned expansion at Cheniere’s Corpus Christi LNG export plant in Texas. The deal was inked between Tourmaline’s marketing subsidiary and Cheniere’s unit Corpus Christi Liquefaction Stage III.
Cheniere said on Thursday that, under the deal, Tourmaline will sell 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a term of 15 years beginning in early 2023.
The company added that it would market the LNG associated with this gas supply or about 0.85 million tonnes per annum. Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.
According to the U.S. LNG exporter, this integrated production marketing transaction is expected to support the development of the Corpus Christi Stage III project.
Jack Fusco, Cheniere’s CEO, said: “This latest IPM agreement with Canada’s largest natural gas producer demonstrates the breadth of Cheniere’s natural gas resource supply and the range of our commercial options.
“This commercial agreement is expected to support our shovel-ready Corpus Christi Stage III project while enabling Canadian natural gas to reach international LNG markets”.
The Corpus Christi Stage III project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 10 mtpa. It has received all necessary regulatory approvals. However, Cheniere is yet to make a final investment decision on the expansion project.
It is worth reminding that, Bechtel handed over operational control of the third train at the Corpus Christi plant to Cheniere in late March, marking the substantial completion of the liquefaction unit.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.