Cheniere Energy’s subsidiary Corpus Christi Liquefaction Stage III has entered into a long-term gas supply agreement (GSA) with a subsidiary of Canada’s largest natural gas producer, Tourmaline Oil Corporation
Under the GSA, Tourmaline will supply 140,000 MMBtu/d of natural gas to Corpus Christi Stage III over a 15-year period beginning in early 2023. The LNG associated with this gas supply, approximately 0.85 mta, will be marketed by Cheniere.
Cheniere will pay Tourmaline an LNG-linked price based on the Platts Japan Korea Marker, after deductions for fixed LNG shipping costs and a fixed liquefaction fee. Tourmaline Oil Corp is acting as guarantor of the GSA on behalf of Tourmaline. This ‘integrated production marketing’ (IPM) transaction is expected to support the development of the Corpus Christi Stage III project.
Cheniere president and chief executive Jack Fusco said “This latest IPM agreement with Canada’s largest natural gas producer demonstrates the breadth of Cheniere’s natural gas resource supply and the range of our commercial options.”
"This commercial agreement is expected to support our shovel-ready Corpus Christi Stage III project while enabling Canadian natural gas to reach international LNG markets. Additionally, it reinforces Cheniere’s track record of creating collaborative, innovative solutions to meet customers’ needs and supports Cheniere’s growth.”
The supply agreement with Cheniere is part of Tourmaline’s ongoing market diversification strategy. “We are pleased to be supplying low-emissions Canadian natural gas with Cheniere to growing international markets,” said Tourmaline Oil Corp president and chief executive Mike Rose.
The Corpus Christi Liquefaction facility is in Corpus Christi Bay in Texas. The stage III expansion of the project is being developed to include up to seven midscale liquefaction trains (pending FID) with a total expected nominal production capacity of approximately 10 mta, having received regulatory approval.
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