Cheniere has announced that Glencore – a Swiss commodity trading company – has agreed to purchase 0.8 million tonnes per annum of LNG for a term length of 13 years.
According to the sales and purchase agreement, the price for the purchased LNG will be based on the Henry Hub, with the addition of a liquefaction fee.
Agreements such as these are important for the long-term future of LNG, as sustained decade-long contracts for LNG volumes establish a secure base for long-term demand.
Source: Gelber & Associates
