U.S. LNG exporter Cheniere Energy said on Wednesday its unit has entered into a long-term agreement to purchase natural gas from Canadian Natural Resources.
WHY IS IT IMPORTANT
The U.S. is the world’s largest exporter of liquefied natural gas and had shipped 11.9 billion cubic feet per day of the supercooled fuel in 2024.
Commercial activity in the sector has gained further momentum after U.S. President Donald Trump lifted a moratorium on new LNG export permits after taking office in January.
CONTEXT
Cheniere had said in February it would aggressively pursue new regulatory permits to expand capacity now that Trump is in office.
The company plans to double its current LNG production to 90 million metric tonnes per annum by building more export facilities at Sabine Pass and Corpus Christi, both in Texas, it had then said.
The supply agreement with Canadian Natural is subject to Cheniere making a positive final investment decision with respect to the Sabine Pass Liquefaction (SPL) expansion project.
BY THE NUMBERS
Canadian Natural Resources has agreed to sell 140,000 million British thermal units per day of natural gas to Cheniere Marketing for 15 years, which is expected to commence in 2030.
The SPL expansion project is being developed with an expected total production capacity of up to about 20 MTPA of LNG.
(Reporting by Katha Kalia in Bengaluru; Editing by Shilpi Majumdar)