Apache Corporation entered into a long term gas supply agreement (GSA) with Cheniere Corpus Christi Liquefaction Stage III, LLC, a subsidiary of Cheniere Energy, Inc, to sell 140,000 MMBtu per day, or 0.85 million tonnes per annum, of natural gas for approximately 15 years. Based on international price indexes, a fixed liquefaction fee, and costs incurred, Cheniere will deliver a liquefied natural gas (LNG) price to Apache. Cheniere will market LNG associated with the gas supply.
“This first-of-its-kind long-term agreement with Apache represents a commercial evolution in the U.S. LNG industry, as it will ensure the continued reliable delivery of natural gas to Cheniere from one of the premier producers in the Permian Basin, while enabling Apache to access global LNG pricing and receive flow assurance for its gas,” said Jack Fusco, Cheniere’s President and CEO.
The Corpus Christi Stage III project will include up to seven midscale liquefaction trains with an average production capacity of 9.5 mtpa.
