Cheniere Energy Closes Major LNG Deal with Germany’s BASF

Cheniere Energy Closes Major LNG Deal with Germany’s BASF

Cheniere Energy would supply Germany’s BASF with 0.8 million tons per annum (mtpa) of liquefied natural gas (LNG) as part of the US policy to provide Europe with alternative sources of energy.

The United States has emerged as the world’s largest LNG exporter after the eruption of the Ukrainian war which left Europe scrambling to find alternate sources of the Russian gas.

Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer, has expressed his pleasure towards this sale and purchase agreement called SPA. “We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Feygin in a press release, noting “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable, and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure the stability of its supply chain.”

On the other hand, Dr. Dirk Elvermann, BASF’s Chief Financial Officer referred to this long-term agreement as an opportunity to dedicate an LNG supply chain during the European gas market critical changes. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure a reliable supply of natural gas at competitive terms,” he noted.

LNG Deliveries will commence in mid-2026 and increase to around 0.8 mpta once train seven of the Sabine Pass project comes online. The LNG supply deal will extend through 2043.

Sabine Pass is a facility in Louisiana that currently contains six fully operational liquefaction units or trains each capable of producing 5 mtpa of LNG. The contract would support Cheniere to develop an expansion project called SPL. The SPL expansion project, located adjacent to the existing Sabine Pass facility, is being developed for up to about 20 mtpa of total LNG capacity.

It is worth noting that, Cheniere has also signed supply deals with Norway’s Equinor, and Korea Southern Power as well as China’s ENN Natural Gas earlier this year.

 

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Doaa Ashraf 462 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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