Cheniere signs 22-year LNG supply deal with Petrobras
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.
(Reporting by Dharna Bafna in Bengaluru; Editing by Shreya Biswas)
((Dharna.Bafna@thomsonreuters.com))
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