Cheniere Energy, Malaysia's Petronas sign 20-year LNG Deal

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Posted December 19, 2018

Cheniere Energy (LNG, CQP) announced today that Malaysia's Petronas agreed to buy liquefied natural gas for 20 years from its Sabine Pass export terminal in Louisiana.

Cheniere says Petronas will purchase ~1.1M metric tons/year of LNG on a free on board basis for a 20-year term following the date of first commercial delivery for the sixth natural gas liquefaction train at the Sabine Pass project.

The Sabine Pass Train 6 "is money-good, and the real questions are really at what price/contract structure and when," says Wells Fargo analyst Michael Webber. "With execution of the EPC contract with Bechtel [in November], the one milestone they now need to sort out over the next 3-4 months is financing."

Source: Seeking Alpha