UK-based energy company BG Group has entered into an agreement to buy an additional two million tonnes of liquefied natural gas (LNG) per year, over a 20-year period, from the Sabine Pass terminal in the US state of Louisiana.
In October last year, the company signed a deal with Sabine Pass Liquefaction, a unit of Cheniere Energy Partners, to buy 3.5 million tonnes of LNG a year, over a 20-year period.
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The additional purchase brings BG Group’s total annual contract quantity to 5.5 million tonnes a year.
The company will buy the first batch of LNG when train one operations commence, and will buy a portion of the additional two million tonnes per year as each of trains two, three and four begin operations.
BG Group chief executive Sir Frank Chapman said: "The agreement adds further volume to our diversified global LNG supply portfolio and is underpinned by the recent material increases in US gas reserves as well as a favourable long-term outlook for global LNG demand."
A liquefaction project is being developed by Sabine Liquefaction at the Sabine Pass LNG terminal in the US Gulf Coast region.
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By GlobalDataIt would include four liquefaction trains with a total capacity to produce up to 18 million tonnes annually, and will commence operation in 2015.
Construction work on the project will start this year with an initial phase of two trains, while construction of two additional trains in the second phase is expected to begin next year.
BG Group said it is also carrying out an expansion of the Lake Charles LNG terminal in Louisiana to provide natural gas liquefaction services.
