Cheniere Energy, Inc. announced that its subsidiary, Corpus Christi Liquefaction Stage III, LLC, has entered into a long-term gas supply agreement with Tourmaline Oil Marketing Corp., a subsidiary of Tourmaline Oil Corp., the largest natural gas producer in Canada.
Under the GSA, Tourmaline has agreed to sell 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a term of 15 years beginning in early 2023. The LNG associated with this gas supply, approximately 0.85 million tonnes per annum (“mtpa”), will be marketed by Cheniere. Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), 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.
“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,” said Jack Fusco, Cheniere’s President and CEO. “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.”
“Our long-term supply agreement with Cheniere is the next important step in Tourmaline Oil Corp’s evolving market diversification strategy. We are pleased to be supplying low emission Canadian natural gas with Cheniere to growing international markets,” said Mike Rose, Tourmaline Oil Corp’s President and CEO.
The Corpus Christi Stage III project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 10 mtpa. It has received all necessary regulatory approvals.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tonnes per annum of LNG operating or under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.