Petrobras signs 22-year LNG purchase contract with Cheniere
- 0.8 million tonnes per year (mtpa) of LNG contracted.
- Contract length: 22 years.
- Objective: reduce exposure to LNG spot-market volatility and strengthen Petrobras' natural gas portfolio risk management.
- Supplier Cheniere operates Sabine Pass and Corpus Christi liquefaction terminals with about 56 mtpa of operating capacity.
Deal terms
Petrobras signed a long-term liquefied natural gas (LNG) purchase and sale contract with Cheniere Marketing, LLC. The agreement provides for the purchase of 0.8 million tons per year (mtpa) of LNG for a period of 22 years.
Strategic rationale
Petrobras says the contracting of long-term volumes reflects its strategy to reduce exposure to the volatility of the LNG spot market. The deal is intended to strengthen risk management of the company's natural gas portfolio and increase flexibility and security to meet contracts.
Supplier profile
Cheniere Energy, Inc. is described as the main producer and exporter of LNG in the United States. Its liquefaction portfolio comprises the Sabine Pass and Corpus Christi terminals in Louisiana and Texas, with a total production capacity in operation of approximately 56 mtpa of LNG.
Source: Petrobras