HOUSTON & NEW DELHI--(BUSINESS WIRE)--Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) and GAIL (India) Limited (“GAIL”) today marked the commencement of their 20-year Sale and Purchase Agreement (“SPA”) to supply U.S.-sourced liquefied natural gas to India from Cheniere’s Sabine Pass liquefaction facility in Louisiana, with one of GAIL’s first shipments departing from the facility.
The ship will set sail after today’s ceremony to mark the occasion at Sabine Pass in the presence of Cheniere President and CEO Jack Fusco and GAIL Chairman and Managing Director Mr. B.C. Tripathi, who were joined by Consul General Dr. Anupam Ray, as well as representatives from Cheniere and GAIL.
The SPA, which was signed in December of 2011, commenced on March 1, 2018. Under the terms of the SPA, Cheniere shall sell and make available for delivery to GAIL approximately 3.5 million tonnes of LNG per year.
“The commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL,” said Mr. Fusco. “India remains an important market for LNG, and one that we hope will continue to show signs of growth. We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India.”
“GAIL is one of the foundation customers of Cheniere having signed the contract in 2011. With supplies commencing from the US, GAIL will have a diversified portfolio both on price indexation and geographical locations,” said Mr. Tripathi. “This long term agreement would go a long way in strengthening the relationship between GAIL and Cheniere and reinforcing India-US trade ties,” he added.
GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, Petrochemicals, City Gas, E&P, etc. GAIL is expanding pipeline network by 4000 kms. at an investment of over USD 3 billion to operate over 15,000 kms by 2020. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. It also has a growing international presence through subsidiaries in the USA and Singapore.
Cheniere Energy, Inc. is the leading exporter of U.S. liquefied natural gas. Cheniere is currently operating and constructing its Sabine Pass LNG facility in Louisiana and is constructing a second liquefaction facility near Corpus Christi, Texas. When both projects are complete, Cheniere is expected to be a top-5 global supplier of LNG. Cheniere’s LNG is based on natural gas sourced from the robust, transparent, and liquid U.S. market, which provides access to abundant and low-cost gas resources. Cheniere is a full-service LNG provider, sourcing gas for its facilities and allowing customers to load cargoes at Cheniere’s LNG facilities or receive them at regasification facilities around the world. To date, approximately 300 cumulative LNG cargoes have been exported from the Sabine Pass LNG facility. Cheniere is based in Houston, Texas, and has additional offices in London, Tokyo, Washington, Singapore, Santiago and Beijing.
This press release contains certain statements that may include “forward-looking statements” within the meanings 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 or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements and (vi) statements regarding future discussions and entry into contracts. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of 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. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.