SCT&E LNG on Tuesday informed it has signed a binding 20-year fixed price natural gas supply agreement to support its future LNG facility to be constructed on Monkey Island in Cameron Parish, Louisiana.
In May 2015, the company signed the non-binding MOU with a natural gas supplier for a 20-year fixed price on natural gas from the commencement of operations of the SCT&E LNG facility.
Chairman and CEO, Greg Michaels , said, “We have successfully completed the negotiations and now have a contractual method to offer this unique natural gas supply structure to our LNG offtakers. Together with our upstream supplier, we have essentially created a 25-year hedge on natural gas for our customers.”
SCT&E LNG said the deal is” first of its kind” among U.S. LNG export projects.
The company is looking to export liquefied natural gas via take-or-pay tolling agreements.
So far, SCT&E LNG has signed four offtake MOU’s totalling 4.7 mtpa of LNG, over a third of the proposed facility’s total capacity.
Currently, the facility is scheduled to produce 12 mtpa of LNG with shipments starting in 2022.