Cheniere signs another deal to ship LNG to France

Cheniere Energy Inc., which plans to start U.S. liquefied natural gas exports later this year, signed a second deal in two months to ship the fuel to France.

Cheniere signed an agreement with Electricite de France SA to send 24 LNG cargoes, or 89 trillion British Thermal Units, from its Sabine Pass Terminal in Louisiana in 2017 and 2018, according to a company statement. The price of the cargoes is linked to costs on the Title Transfer Facility, a Dutch trading hub. It’s the second of its kind between the companies after EDF agreed to buy as many as 26 cargoes from Cheniere last month.

U.S. natural gas exports mark the strength of a recent production boom. The nation has transitioned from constructing gas import terminals prior to 2008, to become the largest producer of petroleum and natural gas in the world last year, thanks to advances in extracting the fuel from shale deposits. Cheniere has been at the forefront of turning the U.S. into an LNG exporter, with first exports due in December.

The accord with EDF takes Cheniere Marketing’s sales to 92 cargoes, or up to approximately 340 trillion Btus, to buyers in Europe and Asia through 2018, according to the statement. The cargoes to France will be delivered on an ex-ship basis, where the seller pays the transport costs.

To contact the reporter on this story: Kelly Gilblom in London at kgilblom@bloomberg.net To contact the editors responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net Andrew Reierson

SHOW MORE