Cheniere and Petrobras Secure 22-Year LNG Sales Agreement | Mariner News
Cheniere Marketing, a subsidiary of Cheniere Energy, has finalized a 22-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with Brazilian energy major Petrobras for approximately 0.8 million tonnes per annum (mtpa) of LNG on a free-on-board (FOB) basis. This multi-decade commitment underscores long-term demand visibility and strategic planning within the global gas market.
The agreement is positioned by Cheniere’s Chairman, President, and CEO, Jack Fusco, as a reinforcement of the company’s “leading global LNG provider” status. Fusco noted that the SPA provides “additional commercial support and fixed fee cash flow visibility to underpin further brownfield liquefaction capacity growth,” indicating the deal is foundational to Cheniere’s future capacity expansion plans.
The FOB nature of the agreement means Petrobras assumes responsibility for the LNG’s transportation from the liquefaction terminal. This contractual structure places the onus on Petrobras to secure shipping tonnage for 0.8 mtpa over 22 years. Such a long-term requirement implies sustained employment opportunities for a segment of the LNG carrier fleet, potentially necessitating direct ownership, long-term charters, or a combination of strategies by Petrobras to manage this significant cargo flow well into the second half of the century.
