By Stephen Nakrosis
Two subsidiaries of Cheniere Energy, entered long-term gas supply agreements with EOG Resources, the companies said Monday.
Under the terms of the deal, EOG will sell natural gas to Cheniere subsidiaries Corpus Christi Liquefaction, LLC, and Cheniere Corpus Christi Liquefaction Stage III, LLC, beginning early next year. The deal, which will last about 15 years, will see EOG initially selling about 140,000 MMBtu per day, with that amount rising to 444,000 MMBtu per day.
The companies said 140,000 MMBtu per day of the gas "will be owned and marketed by Cheniere and EOG will receive a price based on the Platts Japan Korea Marker for this gas." The remaining gas will be sold to Cheniere at a price indexed to Henry Hub, the companies said.
The companies said part of the transaction is subject to certain conditions, including "a positive final investment decision on Cheniere's Corpus Christi Stage III project." The Federal Energy Regulatory Commission gave the project a positive Environmental Assessment in March, and all remaining regulatory approvals are expected by the end of this year.
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