Cheniere and EOG Increase Volume and Extend Term of Long-Term Integrated Production Marketing Transaction
Transaction Expected to Complete Commercialization of
Under the amended IPM transaction, EOG has agreed to sell 420,000 MMBtu of natural gas per day to CCL Stage III for a period of 15 years, with one third of the supply targeted to commence upon the completion of each of Trains 1, 4 and 5 of the Corpus Christi Stage III project. The LNG associated with this gas supply, or approximately 2.55 million tonnes per annum (“mtpa”), will be owned and marketed by Cheniere, and EOG will receive a price based on the Platts Japan Korea Marker (“JKM”) for this gas.
In addition, the previously executed gas supply agreement, under which EOG will sell 300,000 MMBtu per day to CCL Stage III at a price indexed to
EOG will continue to sell 140,000 MMBtu of natural gas per day to
“We are pleased to build upon the mutually beneficial long-term agreements we signed in 2019 with EOG, one of the largest independent natural gas producers in
The CCL Stage III project is being developed to include seven midscale liquefaction trains with a total expected nominal production capacity of over 10 mtpa.
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Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, and share repurchases, and (viii) statements regarding the COVID-19 pandemic and its impact on our business and operating results. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the
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