Cheniere signs 22-year LNG supply deal with Petrobras

By Reuters News

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.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.