NEW YORK Cheniere Energy
Partners LP has signed a liquefied natural gas (LNG) supply
deal with British energy firm Centrica Plc.
Houston-based Cheniere will ship
1.75 million tonnes of LNG to Centrica annually under the
agreement, with first commercial delivery set for September
2018, Centrica said.
LNG exports have been touted as
a boon to the domestic steel tube and pipe industry, as they
could boost floundering prices for natural gas and subsequently
increase drilling (
amm.com, Feb. 4).
The 20-year contract between
Cheniere and Centrica, which allows for a 10-year extension,
will be indexed to the Henry Hub natural gas price plus a fixed
"Future gas supplies from the
U.S. will help diversify our energy mix and provide British
consumers with a new long-term, secure and affordable source of
fuel," Prime Minister David Cameron said in a statement.
However, Windsor, England-based
Centrica cautioned that "the contract is subject to ...
Cheniere receiving the necessary regulatory approvals, securing
finance, making a final investment decision and issuing a
notice to proceed with the fifth LNG train" at its LNG export
project in Louisiana.
The company is retooling its Sabine Pass LNG terminal in
Louisiana to handle exports, with construction on Train 1 and
Train 2 kicking off in the third quarter last year, according
to the companys website.