Germany signed an agreement to receive US liquefied gas that will cover the county’s needs for 17 years
Germany has secured its supplies of US liquefied gas under a new long-term agreement as it seeks to provide reliable and affordable alternatives to Russian gas, which the European Union dispensed with after the Russian invasion of Ukraine.
The US Cheniere Energy company announced the signing of a long-term liquefied gas agreement with the German BASF company, which will last for 17 years.
German BASF company is the world’s largest chemicals company, has agreed to buy up to approximately 0.8 million tons per annum of US LNG on a FOB basis, at a Henry Hub price-linked purchase price, plus a fixed liquefaction fee.
The agreement will support the expansion of the Sabine Pass liquefaction terminal, which is being developed for up to approximately 20 million tons per annum of total LNG capacity.
The US liquefied gas deliveries will begin in mid-2026 and extend until 2043, according to the statement issued by Cheniere Energy.
Shipments will increase to approximately 0.8 million tons per month when the first train of the Sabine Pass liquefaction plant expansion project in Louisiana begins commercial operations.
