Cheniere announced a new deal with JERA that could support the recently greenlit Corpus Christi Midscale Expansion or the proposed expansion at Sabine Pass.
Cheniere Marketing and JERA, Japan’s largest power generation company, signed a 1 MMtpa sales purchase agreement beginning in 2029 and running through 2050.
LNG will be sold FOB at a Henry Hub–indexed price, with volumes sourced from anywhere in Cheniere’s portfolio. The arrangement could support capacity from the debottlenecking efforts included in the recently sanctioned Corpus Christi Midscale Expansion or the proposed Sabine Pass expansion.
Cheniere reached FID on the Midscale Expansion in June, adding two modular trains to the Corpus Christi Stage III expansion (see picture below) and performing debottlenecking work on all Stage III facilities. The project will add 5 MMtpa of capacity to Corpus Christi and has 2.8 MMtpa in binding SPAs, enough to fully sell out the new trains. The proposed Sabine Pass expansion would add three trains and 20 MMtpa of capacity, about 40% of which is sold.
Cheniere generally aims to have 90% of capacity contracted before FID. With this new deal, combined contracted volumes for the Midscale and Sabine Pass expansions are close to 50%. A decision on the Sabine Pass expansion is still about a year or more away.
We've discussed Cheniere's expansion plans in detail and you can read more about the company's role in LNG in King Creole. And, for more insight on U.S. LNG, check out the LNG Voyager Weekly Report.
