A Cheniere Energy Partners subsidiary has signed a 20-year deal to sell liquefied natural gas from its proposed Cameron Parish export facility to Gail Ltd., the largest gas transmission and marketing company in India.
Under the agreement, Sabine Pass Liquefaction LLC will sell up to 3.5 million metric tons of liquefied natural gas to Gail from the Sabine Pass facility’s fourth production unit. Until that line is completed, Gail has agreed to buy around 200,000 metric tons of LNG a year from the facility’s second production unit.
Cheniere plans to add four liquefaction units to its Sabine Pass terminal. Each unit will be capable of producing up to 4.5 million metric tons of LNG per year. The project is being developed in phases. The first phase will include two liquefaction units with an annual production capacity of 9 million metric tons.
Sabine Liquefaction has previously announced deals to sell 7 million metric tons of its first-phase capacity. Those deals, according to the state Department of Natural Resources, are worth about $9 billion.
The company is moving toward making a final investment decision on developing and building the first two liquefaction units. Cheniere Energy officials have said the company will use the long-term contracts to secure financing to build the multi-billion dollar project.