Cheniere Energy, the Houston firm with the Midship natural gas pipeline extending from Kingfisher, Oklahoma south to the state line, announced a major long-term contract with a leading natural gas producer in Canada.
Cheniere said its Sabine Pass Liquefaction Stage V, LLC made the deal with ARC Resources U.S. Corp., a subsidiary of ARC Resources Ltd. The agreement covers the sale of 140,000 MMBtu a day of natural gas for 15 years, beginning with commercial operations of the first train of the Sabine Pass Liquefaction Expansion Project.
It is the second long-term agreement between Cheniere and ARC Resources.
“This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important,” said Jack Fusco, Cheniere’s President and CEO.
“Canadian natural gas can play a critical role in helping to meet growing global energy demand,” said Terry Anderson, President and Chief Executive Officer, ARC Resources. He explained the agreement allows his firm to advance its LNG strategy and deliver low-cost, low-emission natural gas to consuming regions in Europe.