Cheniere Energy, Inc. (Cheniere) announced that its subsidiary, Corpus Christi Liquefaction Stage III, LLC (Corpus Christi Stage III) has entered into a long-term gas supply agreement (GSA) with Tourmaline Oil Marketing Corp. (Tourmaline).
Under the GSA, Tourmaline has agreed to sell 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a term of 15 years beginning in early 2023. The LNG associated with this gas supply, approximately 0.85 million tonnes per annum (mtpa), will be marketed by Cheniere. Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee. Tourmaline Oil Corp. is acting as guarantor of the GSA on behalf of Tourmaline. This Integrated Production Marketing (IPM) transaction is expected to support the development of the Corpus Christi Stage III project.
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 approximately 10 mtpa. It has received all necessary regulatory approvals.