Cheniere Energy has entered into a 22-year liquefied natural gas (LNG) sale and purchase agreement with Brazil’s state-owned energy company, Petrobras. The deal strengthens Cheniere’s position as a global LNG provider and secures a long-term customer for its U.S. Gulf Coast operations.
Under the agreement, Cheniere’s marketing subsidiary will supply Petrobras with approximately 0.8 million tonnes of LNG per year. The LNG will be sold on a free-on-board (FOB) basis, with Petrobras managing shipping from Cheniere’s export facilities.
Cheniere executives said the agreement provides visibility into fixed-fee cash flows that will commercially support the potential expansion of the company’s liquefaction capacity.