Cheniere Signs 15-Year LNG Deal with Canadian Natural Resources Pending Sabine Pass Expansion

Cheniere Energy has entered a 15-year long-term agreement with Canadian Natural Resources to purchase 140,000 MMBtu per day of natural gas starting in 2030, contingent upon a positive final investment decision for the Sabine Pass Liquefaction (SPL) expansion project. This expansion is expected to increase Cheniere's LNG production capacity by up to 20 million metric tonnes per annum, aiming to double its production to 90 million metric tonnes per annum through facilities in Sabine Pass and Corpus Christi, Texas. The natural gas pricing will be linked to the Platts Japan Korea Marker (JKM), adjusted for shipping costs and a fixed liquefaction fee, with LNG produced marketed by Cheniere Marketing, LLC. Cheniere is the largest U.S. LNG exporter, shipping 11.9 billion cubic feet per day in 2024, and the deal supports its strategy to meet growing global demand for clean and secure energy. Financial analysts generally view Cheniere favorably, with an average target price suggesting potential upside, though some valuation models advise caution. The agreement underscores Cheniere's robust operational and financial standing, including strong cash flow and production capabilities, positioning it for continued growth in the LNG market.