Page 5 - NorthAmOil Week 25 2022
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NorthAmOil COMMENTARY NorthAmOil
The expansion project is anticipated to enter commercial officer, Anatol Feygin. “We look
production by the end of 2025. forward to leveraging our market-leading LNG
Cheniere said in the FID announcement that platform to explore opportunities to collaborate
earlier this month, its Cheniere Corpus Christi with Chevron on lower-carbon initiatives in the
Holdings (CCH) subsidiary had closed on an future,” he added.
amended and restated $4bn senior secured term “Our strategy is to deliver lower-carbon
loan due in 2029 and an amended, extended and energy to a growing world,” said Chevron’s vice
upsized $1.5bn working capital facility due in president of midstream, Colin Parfitt. “Our
2027. Cheniere has also transferred its equity agreements with Cheniere allow us to harness
interests in Corpus Christi Liquefaction Stage growing US natural gas production and Gulf
III to CCH, and merged that unit into Corpus Coast LNG export capacity to help meet long-
Christi Liquefaction (CCL), a subsidiary of term demand for affordable, reliable and ever
CCH, with CCL continuing as the surviving cleaner energy.”
company. This strategy is also behind Chevron’s offtake
Borrowings under CCH’s 2029 term loan agreements with Venture Global. Similarly,
will be used to fund roughly half of the total the deals cover a combined 2mn tpy of LNG,
expected cost of building Stage 3, the associated with 1mn tpy set to come from the under-con-
pipeline expansion and other related infrastruc- struction Plaquemines LNG facility, and 1mn This is the first
ture. The remaining costs are anticipated to be tpy from CP2 LNG, for which Venture Global
funded by Cheniere. started striking offtake agreements earlier this SPA signed by
year. Those deals have a duration of 20 years. Cheniere linked
Offtake agreements Venture Global’s SPAs with EnBW also entail
Meanwhile, both Cheniere and Venture Global volumes from both Plaquemines and CP2 total- to additional
are benefiting from new offtake deals, including ling 1.5mn tpy, or 750,000 tpy from each facility,
those they signed with Chevron this week. over a 20-year period. capacity beyond
In Cheniere’s case, the company agreed to While EnBW is Venture Global’s first German
supply Chevron 2mn tpy in total – 1mn tpy customer, the US company is already well-estab- Stage 3.
from Sabine Pass LNG from 2026 until 2042 lished as a seller of LNG to European players,
and a further 1mn tpy for a 15-year period from and has existing agreements with PGNiG, BP,
2027, contingent on a further expansion at Cor- Shell, Repsol, Edison and GALP.
pus Christi beyond the Stage 3 project. This is The deal comes as gas buyers in Germany and
the first SPA signed by Cheniere linked to addi- elsewhere in Europe scramble to secure new
tional capacity beyond Stage 3. sources of supply to help them replace Russian
“These long-term SPAs underscore the gas. Negotiating offtake agreements takes time,
growing demand for reliable, cleaner burning but, given that Germany revived several stalled
LNG supply beyond 2040 and further support LNG import projects after the war in Ukraine
investment in additional LNG capacity beyond started, more offtake deals with German – and
our Corpus Christi Stage III project,” stated other European – companies can be expected
Cheniere’s executive vice president and chief to follow.
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