Cheniere Energy has entered into a long-term sale and purchase agreement with Brazilian state-owned energy giant Petrobras.
The multi-decade contract will see Cheniere deliver LNG into the second half of the century.
Under the terms of the agreement, subsidiary Cheniere Marketing will supply approximately 0.8 million tonnes per annum (mtpa) of LNG to Petrobras on a free-on-board (FOB) basis over a 22-year term.
The deal underpins Cheniere’s commercial approach to lock in long-term, fixed-fee cash flows that support further brownfield liquefaction capacity expansion across its operations.
Cheniere currently operates a world-scale export platform consisting of the Sabine Pass and Corpus Christi facilities along the US Gulf Coast, with a combined operational production capacity of around 56 mtpa and a further 5 mtpa under construction.
“We are pleased to enter into this multi-decade agreement with Petrobras, one of the largest energy companies in the world,” said Jack Fusco, Chairman, President, and CEO of Cheniere.
“This agreement once again reinforces Cheniere’s position as a leading global LNG provider, while providing additional commercial support and fixed fee cash flow visibility to underpin further brownfield liquefaction capacity growth.”
Fusco added that the company looks forward to supplying secure and reliable LNG to Petrobras well into the future under the new long-term arrangement.
The transaction highlights rising international demand for secure, flexible energy supplies from major exporters as energy companies seek long-term contract visibility to bolster grid reliability and energy transition initiatives.
As the largest LNG producer in the United States, Cheniere continues to expand its global customer reach across key markets in South America, Europe, and Asia through long-term offtake agreements.
