Cheniere Secures 22-Year Petrobras LNG Supply Deal

Cheniere Energy has signed a landmark 22-year agreement to supply Brazil's Petrobras with U.S. liquefied natural gas (LNG). Under the sale and purchase agreement, Petrobras will buy approximately 800,000 tonnes of LNG per year from Cheniere Marketing on a free-on-board basis.

The deal comes as Cheniere continues to expand its Gulf Coast export business. The Houston-based company operates the Sabine Pass LNG terminal in Louisiana and Corpus Christi LNG facility in Texas, with combined production capacity of approximately 56 million tonnes per annum. Another roughly 5 mtpa of capacity is under construction, including estimated debottlenecking opportunities.

'We are pleased to enter into this multi-decade agreement with Petrobras, one of the largest energy companies in the world,' said Jack Fusco, Cheniere's chairman, president and CEO. 'This agreement provides additional commercial support and fixed-fee cash flow visibility as we consider further brownfield liquefaction growth.'

The deal follows the recent completion of Cheniere's major Stage 3 expansion at Corpus Christi, which increased its overall LNG production capacity by more than 20%. Cheniere has said it is continuing to pursue additional liquefaction expansion opportunities at its Gulf Coast facilities.