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Cheniere Gas Deal With Apache Finalized

The Cheniere Energy LNG facility in Corpus Christi will soon be building another seven mid-scale production units expected to produce 9.5 million metric tons of LNG a year. Courtesy Photo

Cheniere Energy Inc. continues to grow in Corpus Christi. On June 3, the local subsidiary of the company signed a 15-year agreement with Apache Corp. to supply gas to Cheniere’s liquefied natural gas facilities in Gregory. The announcement was made Monday.

“This first-of-its-kind long-term agreement with Apache represents a commercial evolution in the US LNG industry,” said Jack A. Fusco, Cheniere’s president and CEO. “It will ensure the continued reliable delivery of natural gas to Cheniere from one of the premier producers in the Permian Basin while enabling Apache to access global LNG pricing and receive flow assurance for its gas.”

Based in Houston, Apache is an oil and gas exploration and production company. The agreement with Cheniere Corpus Christi is for 140 million cubic-feet of natural gas a day, which will be used to make 850,000 metric tons of LNG a year.

Also based in Houston, Cheniere is the biggest supplier of LNG and the biggest buyer of natural gas in the country. The company has been growing as foreign markets expand their use of natural gas over coal.

More wholesale gas sales means more facilities to produce the increasing demand. Cheniere is looking to add to its three production units already permitted for the Gregory plant. The company awaits permits for seven mid-scale production units that will produce 9.5 million metric tons of LNG a year. The latest project is known as Cheniere Corpus Christi Liquefaction Stage III.

“This commercial agreement, which is expected to support the Corpus Christi Stage III project, reinforces Cheniere’s track record of creating innovative, collaborative solutions to meet customers’ needs and support Cheniere’s growth,” said John J. Christmann IV, Apache’s CEO and president.

Cheniere also announced on June 3 its plan to build a sixth liquefaction train in its Sabine Pass LNG plant in Louisiana, which should go on line in 2023.

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