Cheniere Locks In 4 mtpa QatarEnergy Deal Through 2054
LNG sits 51% above its 52-week low of $186.2 on light trading volume (0.2× avg).
Summary
Cheniere signed long-term sale and purchase agreements to supply QatarEnergy with a combined 4 million tonnes per annum of LNG through 2054. The volumes split evenly: 2 mtpa from Sabine Pass and 2 mtpa from Corpus Christi, sold free-on-board with deliveries starting in the early 2030s. One mtpa of the Sabine Pass tranche is contingent on a positive final investment decision for the first phase of the Sabine Pass Expansion, which Cheniere is developing with Bechtel and targets at up to 20 mtpa of peak capacity. The deal extends Cheniere's contracted backlog deep into the 2050s and underpins the expansion case, though the volumes are back-end loaded and the FID condition leaves part of the commitment open. Shares were up 1.25% at $287.71 on the news. The next hard checkpoint is the Sabine Pass Expansion Phase 1 FID, which the company has not dated.
Updates
· Reuters — QatarEnergy will pay Henry Hub-indexed prices plus a fixed liquefaction fee for the 4 mtpa, which it is buying to hedge disruption of its Hormuz-dependent Qatari exports.
At the time of this announcement, LNG was trading at $282.08 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $58.3B. The 52-week trading range was $186.20 to $300.89. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.