Tourmaline and Cheniere Corpus Christi Stage III sign agreement
Cheniere Energy, Inc. announced that its subsidiary, Corpus Christi Liquefaction Stage III LLC, has entered into a long-term gas supply agreement (GSA) with Tourmaline Oil Marketing Corp., a subsidiary of Tourmaline Oil Corp., one of the largest natural gas producers in Canada.
Under the GSA, Tourmaline has agreed to sell 140 000 million Btu/d of natural gas to Corpus Christi Stage III for a term of 15 years beginning in early 2023. The LNG associated with this gas supply, approximately 0.85 million tpy, will be marketed by Cheniere. Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee. Tourmaline Oil Corp. is acting as guarantor of the GSA on behalf of Tourmaline. This Integrated Production Marketing (IPM) transaction is expected to support the development of the Corpus Christi Stage III project.
“This latest IPM agreement with Canada’s largest natural gas producer demonstrates the breadth of Cheniere’s natural gas resource supply and the range of our commercial options,” said Jack Fusco, Cheniere’s President and CEO. “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.”
“Our long-term supply agreement with Cheniere is the next important step in Tourmaline Oil Corp’s evolving market diversification strategy. We are pleased to be supplying low emission Canadian natural gas with Cheniere to growing international markets,” said Mike Rose, Tourmaline Oil Corp’s President and CEO.
The Corpus Christi Stage III project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 10 million tpy. It has received all necessary regulatory approvals.