Portuguese oil and gas company Galp has signed a sales and purchase agreement (SPA) with liquefied natural gas (LNG) producer and exporter Cheniere for access to U.S. LNG.
The agreement includes a 20-year 0.5 mtpa delivery contingent to FID of the second train of Sabine Pass Liquefaction Expansion Project, currently under development.
The deal also entails access to a limited number of early cargoes, from 2027 and up to the start of the second train.
Galp´s volumes will be purchased on a FOB basis and priced indexed to Henry Hub plus a fixed liquefaction fee.
“This agreement further enhances Galp’s LNG sourcing basket with access to competitive U.S. volumes, adding flexibility and diversity to its portfolio,” the company said in a statement.