A subsidiary of Cheniere Energy, the largest US exporter of LNG, has inked a long-term integrated production marketing (IPM) gas supply deal with a unit of ARC Resources to bring Canadian gas to the international market
Under the IPM agreement, Cheniere Energy subsidiary Corpus Christi Liquefaction Stage III will purchase 140,000 mmbtu per day (/day) over a 15-year term from ARC Resources US Corp. The deal will commence with commercial operations of Train 7 of the Corpus Christi Stage III Project.
The LNG associated with this gas supply, approximately 0.85 mta will be marketed by Cheniere. Cheniere will pay ARC US an LNG-linked price for its gas, based on the Platts Japan Korea Marker, after deductions for fixed LNG shipping costs and a fixed liquefaction fee. The IPM agreement is subject to Corpus Christi Stage III making a positive FID to construct the Corpus Christi Stage III Project.
“We are pleased to enter into this long-term IPM agreement with one of Canada’s largest natural gas producers, enabling Canadian natural gas to reach international markets,” said Cheniere president and chief executive Jack Fusco. “This commercial agreement further demonstrates Cheniere’s ability to create collaborative, innovative tailored solutions that meet the needs of our customers. This IPM agreement with ARC US is expected to provide additional support to the Corpus Christi Stage III Project, which we expect to reach FID this summer.”
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 over 10 mta. This would raise the capacity of the Corpus Christi Liquefaction to 25 mta.
