BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber (https://pmc.platts.com), Please navigate to Platts Market Center to reset your password.

In this list
Natural Gas

Cheniere marketing unit signs sales deal with Austria's OMV

Energy | Natural Gas | LNG | Oil | Refined Products

Interview: Satvinder Singh, Enterprise Singapore

Natural Gas | Oil

Platts Wellscape P2P

Oil | Crude Oil

Platts Workshop at the S&P Global Platts Energy

Natural Gas

Merger with Energen to turn Diamondback into pure-play Permian powerhouse

Cheniere marketing unit signs sales deal with Austria's OMV

Cheniere Energy's marketing unit has secured a multi-year sales deal with thetrading arm of Austrian energy company OMV to deliver LNG cargoes to Europe,Cheniere said Wednesday.

Not registered?

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

Register Now

Meanwhile, another Gulf Coast export project under development is nearingfinal investment decision.

Details about the agreement between Cheniere Marketing and OMV, includingpricing and duration, were not being released, Cheniere spokesman EbenBurnham-Snyder said in an email responding to questions.

Europe and Asia are key markets for Cheniere as it adds liquefaction units, ortrains, at its Sabine Pass export terminal in Louisiana and works to completeconstruction at its Corpus Christi, Texas, export facility.

OMV produces and markets oil and natural gas. It also is involved inpetrochemicals and refining. According to the company's website, OMV operatesa gas pipeline network in Austria and gas storage facilities in Austria andGermany.

In August 2015, Cheniere Marketing signed a similar deal with France's EDF.That sales arrangement called for delivery of up to 26 cargoes (approximately100 MMcf/d) on Delivered Ex-Ship terms to the Dunkirk terminal through 2018.The sale price was indexed to the Dutch Title Transfer index, or TTF, with acancellation clause written into the contract.

Cheniere regulatory filings at the time stated that the variable SPA withCheniere Marketing allowed them to purchase any LNG produced by Sabine Pass inexcess of that required for other customers at "Cheniere Marketing's option"for a fee of $3/MMBtu.

Cheniere Marketing owns the right to liquefy any excess, uncontracted capacityavailable at the Sabine Pass and Corpus Christi LNG export facilities. PlattsAnalytics' Bentek Energy estimated at the time of the EDF deal that thatamounted to around 800 MMcf/d of potential capacity split between the seventrains under development at the two facilities.

Sabine Pass currently has four trains in operation and a fifth underdevelopment. Cheniere has two trains under development at Corpus Christi. Asixth train at Sabine Pass and a third train at Corpus Christi have beenproposed subject to commercialization.

Currently, Cheniere is the only US exporter of LNG produced from shale gas.Dominion Energy will be the second when its Cove Point terminal in Marylandships its first cargo in the coming days or weeks; it began introducingfeedgas to the facility on Tuesday. Several US LNG export projects are underconstruction and more than a dozen others are being proposed.

NextDecade is among the second wave of developers. An executive reiteratedWednesday that the company wants to make a final investment decision on itsRio Grande LNG export terminal project in Brownsville, Texas, by the end of2018 so it can begin shipments in 2023.

"Customer engagement has ramped up materially from earlier in 2017 to where weare today," NextDecade President Matt Schatzman said at a Wells FargoSecurities energy industry conference in New York that was webcast. "We havebeen talking to quite a few customers. We've been engaged with them in Asia,as well as Europe."

--Harry Weber, harry.weber@spglobal.com

--Edited by Richard Rubin, richard.rubin@spglobal.com