In this list
Natural Gas

Cheniere gas supply deal with Canada's Tourmaline lifts LNG expansion in Texas

Crude Oil | Natural Gas | Natural Gas (North America) | Upstream

Platts Upstream Indicator

Refined Products | Fuel Oil | Shipping | Bunker Fuel | Containers | Marine Fuel

The wait is (still) on at the Panama Canal

Oil | Energy Transition | Energy

APPEC 2024

Natural Gas | Energy Transition | Coal | Electric Power | Emissions | Electric Power Electricity | Renewables | Hydrogen

COP28: Leaders pledge to triple renewable generation capacity by 2030

Biofuels | Energy

S&P Global Platts Proposes to Revise Chicago Ethanol Price Assessment Methodology

Oil & Gas | Shipping | Coal | Metals | Electric Power | Energy Transition | Refined Products | Bunker Fuel | Fuel Oil | Marine Fuel | Metallurgical Coal | Steel | Ferrous | Nuclear | Renewables | Crude Oil

Commodity Tracker: 5 charts to watch this week

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

Cheniere gas supply deal with Canada's Tourmaline lifts LNG expansion in Texas


15-year pact similar to two others with gas producers

Proposed Stage 3 project at Corpus Christi not yet sanctioned

  • Author
  • Harry Weber
  • Editor
  • Richard Rubin
  • Commodity
  • Natural Gas
  • Topic
  • LNG Commoditization

Cheniere has reached a 15-year supply deal with Canadian oil and gas producer Tourmaline that is tied to a proposed expansion at the US LNG exporter's Corpus Christi Liquefaction terminal in Texas, the companies said July 15.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Under the deal, Tourmaline will sell 140,000 MMBtu/d of natural gas to Cheniere, beginning in 2023. The LNG associated with this gas supply, approximately 850,000 mt/year, will be marketed by Cheniere.

The deal is similar to agreements tied to the Corpus Christi Stage 3 expansion that Cheniere previously reached with US gas producers Apache and EOG Resources. Together, the three agreements combined total 2.55 million mt/year of the facility's expected capacity of 10 million mt/year.

The model of the gas agreements allows the upstream producers to access a global price by selling their gas to world markets through Cheniere 's LNG export terminal. It exposes the exploration and production companies to greater price risk, though robust prices in Asia in recent months make the economics attractive. In return for marketing the gas to world buyers, Cheniere gets an undisclosed fee that covers liquefaction and other costs.

Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts JKM – the benchmark for spot-delivered LNG delivered to Northeast Asia -- after deductions for fixed LNG shipping costs and a fixed liquefaction fee.

Cheniere has not yet made a final investment decision on the mid-scale liquefaction expansion it has proposed to build at its Texas facility. The project would have up to seven trains. Cheniere has said that it would sanction the expansion only after signing additional commercial agreements and obtaining adequate financing.

Cheniere currently operates three traditional size liquefaction trains at Corpus Christi Liquefaction and five trains at Sabine Pass Liquefaction in Louisiana. A sixth train at Sabine Pass could begin producing LNG later this year.