Cheniere Energy strikes LNG supply deal with BASF
Aug 22 (Reuters) — Cheniere Energy said on Tuesday it would supply 0.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to Germany’s BASF.
The United States has emerged as the world’s largest LNG exporter after Western sanctions on major supplier Russia left Europe scrambling to find alternate sources for the commodity.
Cheniere has also entered into supply deals with Norway’s Equinor and Korea Southern Power as well as China’s ENN Natural Gas earlier this year.
Tuesday’s contract would also support Cheniere’s Sabine Pass LNG expansion in Louisiana, which is being developed for up to about 20 mtpa of total LNG capacity.
Deliveries are expected to start in mid-2026 and only after Cheniere reaches a positive final investment decision with respect to the first train of the Sabine Pass project expansion. The LNG supply deal will extend through 2024.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shilpi Majumdar)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.