Petrobras Signs Long-Term LNG Supply Deal with Cheniere

(Credit: Marcos Morteira / Petrobras)

Petrobras has signed a 22-year liquefied natural gas (LNG) purchase and sale agreement with U.S. LNG exporter Cheniere for 0.8 million tonnes per annum of LNG.

The Brazilian state-run company signed a deal with Cheniere Marketing, a subsidiary of Cheniere Energy.

The long-term volumes are intended to reduce Petrobras' exposure to volatility in the LNG spot market, strengthen risk management across its natural gas portfolio and provide greater flexibility and security in meeting contractual commitments.

Cheniere Energy operates the Sabine Pass and Corpus Christi LNG terminals in Louisiana and Texas, respectively, with combined LNG production capacity currently in operation of about 56 mtpa.