Cheniere Energy in long term IPM pact with ARC Resources

Cheniere Energy (LNG) and Cheniere Energy Partners (CQP) announced that Sabine Pass Liquefaction Stage has entered into a long-term Integrated Production Marketing IPM gas supply agreement with ARC Resources a subsidiary of ARC Resources a leading natural gas producer in Canada. Under the IPM agreement, ARC Resources has agreed to sell 140,000 MMBtu per day of natural gas to SPL Stage 5 for a term of 15 years, commencing with commercial operations of the first train of the Sabine Pass Liquefaction Expansion Project . SPL Stage 5 will pay ARC Resources an LNG-linked price for its gas, based upon the Dutch Title Transfer Facility price, after deductions for a fixed regasification fee, fixed LNG shipping costs and a fixed liquefaction fee. The IPM agreement is subject to, among other things, a positive Final Investment Decision with respect to Train 7. The LNG associated with this gas supply, approximately 0.85 million tonnes per annum , will be marketed by Cheniere Marketing International a subsidiary of Cheniere. “This is the second long-term IPM agreement between Cheniere and ARC Resources, and further progresses the commercialization of the SPL Expansion Project. This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important,” said Jack Fusco, Cheniere’s President and CEO. “We are pleased to build upon our existing long-term relationship with ARC Resources, and further demonstrate Cheniere’s ability to construct innovative solutions that help meet the needs of customers and counterparties along the LNG value chain while delivering value to our stakeholders.”