Vitol and Cheniere Energy have entered into an LNG sales & purchase agreement for 15 years.
Under the terms of the agreement, Vitol will buy 0.7 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis beginning in 2018.
The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
Jack Fusco, Cheniere’s president and CEO, says: ‘This agreement continues Cheniere’s commercial momentum and supports our growth plans, while demonstrating the value LNG buyers place on Cheniere’s unique ability to offer flexible solutions tailored to the needs of LNG customers worldwide.
Russel Hardy, group CEO at Vitol, adds: ‘We are delighted to be working with Cheniere, a pioneer in US liquefaction. Vitol is committed to the long-term development of the LNG market. We believe that LNG has an important role to play in the future energy mix and that its evolution will require a more flexible and tradeable LNG market.’