Cheniere signs 22-year LNG supply deal with Petrobras

Sept 29 (Reuters) - US LNG exporter Cheniere Energy LNG.N said on Tuesday its marketing unit has entered into a long-term liquefied natural gas sale and purchase agreement with Petrobras for 22 years.

Under the SPA, Brazil-based Petrobras has agreed to purchase approximately 0.8 million tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis.

• LNG developers use long-term contracts with creditworthy buyers to underpin financing and investment decisions for multibillion-dollar export projects.

• The deal adds to Petrobras' efforts to reduce exposure to volatile spot LNG prices and secure supply flexibility for Brazil's gas and power market.

• Cheniere CEO Jack Fusco said the agreement provides "additional commercial support and fixed fee cash flow visibility to underpin further brownfield liquefaction capacity growth."

• Earlier in February, the company entered a long-term LNG supply deal with Taiwan's CPC Corp, under which CPC will purchase up to 1.2 mtpa of the superchilled gas from Cheniere's subsidiary from 2026 through 2050.

• Petrobras had said in March last year that it was in talks with US LNG suppliers for additional long-term import agreements.