MADRID | Gas Natural Fenosa announced on Tuesday its biggest liquefied natural gas (LNG) supply contract yet in the US with the company Cheniere. Following the deal, Cheniere will supply the Spanish multinational almost 5 billion cubic metres of LNG per year, with no restrictions on its ultimate destination.
This contract marks a milestone in the history of the Spanish corporation, which for the first time will receive natural gas from US. This LNG can be marketed advantageously both in the Atlantic and Pacific basin, once the widening of the Panama Canal has been completed, since it has no restrictions on whom it can be delivered to.
The contract, which has an initial term of 20 years and is equivalent to 15% of the consumption of the Spanish market, foresees the first gas delivery being carried out in 2017, once the construction of the second liquefaction train is concluded in the plant being developed by Cheniere in Sabine Pass (Louisiana).
The Spanish firm becomes the second company to sign a US LNG purchase agreement, after the British BG. The United States will move from being a net importer to being an exporter of this hydrocarbon, after the boom in unconventional gas production.
Gas Natural Fenosa operates in 25 countries, has more than 20 million customers and 15.8 GW of installed power. With a fleet of nine LNG tankers, it is a company of reference for LNG/NG in the Atlantic and Mediterranean basins, where it operates 30 billion cubic metres.
When the US supply deal begins, Cheniere will become one of the main natural gas suppliers for the Spanish company, contributing to its diversification.
* The complete press release is here.