Cheniere to Ship LNG Cargoes to France
Cheniere Energy agrees to send 24 cargoes of liquefied natural gas (LNG), or 89T BTUs, from its Sabine Pass Terminal in Louisiana in 2017 and 2018 to French state-controlled power utility Electricite de France (EDF), its second deal in two months to ship the fuel to France after EDF agreed to buy as many as 26 cargoes last month.
Cheniere Marketing International LLP, wholly owned subsidiary of Cheniere Energy, has entered into another sales arrangement with EDF for the delivery of LNG cargoes on an ex-ship basis or "DES" from the Sabine Pass LNG terminal.
Under the deal, the sales price of the shipments will be linked to the Title Transfer Facility (TTF) in the Netherlands, continental Europe's biggest and most liquid gas trading point.
The sales price of the shipments will be linked to the Title Transfer Facility in the Netherlands, continental Europe's biggest and most liquid gas trading point, but Reuters reports that LNG retained cancellation options as part of its deal, meaning it could escape some supply commitments if it found more profitable outlets in Asia or the Middle East.
The exact number of cargoes firmly committed to EDF could not be confirmed, although some sources believed only a handful were fixed to arrive at EDF's newly built import terminal at Dunkirk in France.
But, on a combined basis, Cheniere Marketing's LNG portfolio is expected to have approximately 9 million tonnes per annum (mtpa) of LNG available from Trains 1 through 6 of the Sabine Pass Liquefaction Project and Trains 1 through 3 of the CCL Project.