HOUSTON–(BUSINESS WIRE)–Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) today announced that its subsidiary, Corpus Christi Liquefaction Stage III, LLC (“Corpus Christi Stage III”), has entered into a production agreement Long-Term Integrated Gas Marketing (“IPM”) Supply Agreement with ARC Resources US Corp (“ARC US”), a subsidiary of ARC Resources, Ltd. (TSX: ARX), a major natural gas producer in Canada.
Under the IPM agreement, ARC US has agreed to sell 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a term of 15 years, commencing commercial operation of Train 7 of the Corpus Christi Stage III project . The LNG associated with this gas supply, approximately 0.85 million tonnes per year (“mtpa”), will be marketed by Cheniere. Cheniere will pay ARC US an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deducting fixed LNG shipping charges and fixed liquefaction charges. ARC Resources, Ltd. will act as guarantor of the IPM Agreement on behalf of ARC US. The IPM agreement is subject to Corpus Christi Stage III making a positive final investment decision to construct the Corpus Christi Stage III project.
“We are delighted to enter into this long-term IPM agreement with one of Canada’s largest natural gas producers, enabling Canadian natural gas to reach international markets,” said Jack Fusco, President and CEO. of Chenière. “This commercial agreement once again demonstrates Cheniere’s ability to create collaborative and innovative tailor-made solutions that meet the needs of our customers. This IPM agreement with ARC US should provide additional support for the Corpus Christi Stage III project, which we expect to reach FID this summer.
The Corpus Christi Stage III project is being developed to include up to seven medium-sized liquefaction trains with a planned total nameplate production capacity of over 10 mtpa.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, safe and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG supplier, with capabilities that include gas supply and transportation, liquefaction, vessel charter and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the US Gulf Coast, with a total production capacity of approximately 45 million tonnes per year of LNG operating. Cheniere is also pursuing opportunities for liquefaction expansion and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, with additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
For more information, please visit the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the Securities and Exchange Commission.
ARC Resources Ltd. is a Montney exclusive producer and one of Canada’s largest dividend-paying energy companies, with low-cost operations and leading ESG performance. ARC’s investment grade credit profile is supported by geographic and commodity diversity and strong risk management practices in all aspects of the business. ARC’s common shares trade on the Toronto Stock Exchange under the symbol ARX.
This press release contains certain statements which may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact or statements or conditions, included herein are “forward-looking statements”. “Forward-looking statements” include, among others, (i) statements regarding the financial and operating directions, business strategy, plans and objectives of Cheniere, including the development, construction and operation of liquefaction, (ii) statements regarding regulatory clearance and approval expectations, (iii) statements expressing opinions and expectations regarding the development of the activities of the LNG terminal and the Chenière pipelines, including the liquefaction facilities , (iv) statements regarding third party business operations and prospects, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entering into contracts, (vii) statements relating to the Cheniere’s capital deployment, including intent, capacity, scope and timing of capital expenditures ions, debt repayment, dividends and share buybacks, and (viii) statements regarding the COVID-19 pandemic and its impact on our business and operations results. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and such expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by securities laws, Cheniere assumes no obligation to update these forward-looking statements.