Galp and Cheniere Enter 20-Year LNG Supply Agreement

Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE: LNG) announced on 5 August 2024 that its subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has signed a long-term liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Galp Trading S.A. (“Galp”), which is a subsidiary of Galp Energia, SGPS, S.A. (“Galp Energia”).

Under the agreement, Galp will purchase approximately 0.5 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing for 20 years, on a free-on-board basis. The purchase price will be linked to the Henry Hub price, plus a fixed liquefaction fee. Deliveries are anticipated to begin in the early 2030s, contingent upon a positive Final Investment Decision for the second train (“Train Eight”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”). The agreement also allows for a limited number of early cargoes to be acquired by Galp before Train Eight commences.

Jack Fusco, President and Chief Executive Officer of Cheniere, stated, “We are excited to sign this long-term agreement with Galp, a prominent player in Iberia’s energy sector. This deal underscores the essential role US natural gas will have in Europe's energy landscape for the remainder of this century. We look forward to supplying Galp with our flexible, reliable, and cleaner-burning LNG. This SPA will help support the SPL Expansion Project and reflects the ongoing progress and momentum in its development.”

The SPL Expansion Project is designed to expand LNG capacity to approximately 20 mtpa, including potential debottlenecking opportunities. In February 2024, Cheniere Energy Partners, L.P. (NYSE: CQP) subsidiaries filed an application with the Federal Energy Regulatory Commission to site, construct, and operate the SPL Expansion Project. They also submitted a request to the Department of Energy for authorization to export LNG to both Free-Trade Agreement (“FTA”) and non-FTA countries.

Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, offering a clean, secure, and cost-effective solution to the increasing global demand for natural gas. As a comprehensive LNG provider, Cheniere handles gas procurement, transportation, liquefaction, vessel chartering, and LNG delivery. The company operates one of the largest liquefaction platforms worldwide, featuring the Sabine Pass and Corpus Christi facilities on the U.S. Gulf Coast. With a current production capacity of about 45 mtpa of LNG and an additional 10+ mtpa under construction, Cheniere is actively pursuing expansion opportunities and other projects across the LNG value chain. Headquartered in Houston, Texas, Cheniere also has offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.