Tourmaline Inks 15-Year Gas Supply Deal Cheniere (LNG)

Corpus Christi Liquefaction Stage III, LLC, a subsidiary of Cheniere Energy, Inc. LNG, recently signed a long-term gas supply agreement (GSA) with Tourmaline Oil Marketing Corp., a unit of Tourmaline Oil Corp., Canada’s largest natural gas producer.

Per the terms of the agreement, Tourmaline will supply 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a 15-year period starting early 2023. Cheniere will market the LNG linked with this gas supply, which will be 0.85 million tonnes per annum (mtpa).

Download Tourmaline Wells Drilled Since 2019

After deducting fixed LNG transportation expenses and a fixed liquefaction charge, Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM). On behalf of Tourmaline, Tourmaline Oil Corp. is acting as a GSA guarantor. The Corpus Christi Stage III project is projected to benefit from this Integrated Production Marketing (IPM) deal.

Cheniere’s president and CEO, Jack Fusco believes that this latest IPM deal with Tourmaline demonstrates the expanse of the company’s natural gas resource supply and the diversity of its commercial possibilities. He further added that “This commercial agreement is expected to support our shovel-ready Corpus Christi Stage III project while enabling Canadian natural gas to reach international LNG markets. Additionally, it reinforces Cheniere’s track record of creating collaborative, innovative solutions to meet customers’ needs and supports Cheniere’s growth.”

Earlier this year, the company completed its third liquefaction train at its Corpus Christi liquefied natural gas export plant in Texas. Its EPC affiliate Bechtel Oil, Gas and Chemicals, Inc. handed over the reins, custody and control of the Train 3 to it post commissioning.

Cheniere along with its subsidiaries and Bechtel announced the substantial closure of all eight liquefaction trains at the Corpus Christi liquefaction (CCL) project alongside the Sabine Pass liquefaction endeavor, ahead of schedule and within budget. With the arrival of the new train, the company’s CCL Project now has three trains functioning.

Moving on, Cheniere intends to develop seven midscale liquefaction trains adjacent to the CCL Project. Total production capacities of these trains are expected to be roughly 10 Mtpa.

About the Company

Cheniere is primarily engaged in businesses related to liquefied natural gas (or LNG) through its two business segments, namely LNG terminal, and LNG and natural gas marketing. The company through its controlling interest in Cheniere Energy Partners L.P.  CQP owns and operates the Sabine Pass LNG terminal (North America’s first large-scale liquefied gas export facility) in Louisiana.

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