US-based SCT&E LNG has signed an agreement to support its future $6.9bn liquefied natural gas (LNG) export terminal to be built on its 246 acre site located on Monkey Island in Cameron Parish, Louisiana.
The company signed a memorandum of understanding (MOU) with a natural gas supplier in May last year for a 20-year fixed price on natural gas from commencement of operations of the facility.
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Over the last several months, SCT&E LNG has been in talks with the supplier to convert the MoU into a gas supply agreement.
SCT&E LNG chairman and CEO Greg Michaels said: "I am very pleased to announce 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, and the LNG offtake community is responding positively."
The company’s export project is scheduled to produce a total of 12 million tonnes per annum (mtpa) of LNG and shipments are set to begin in 2022.
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By GlobalDataStrategically located on Louisiana’s Calcasieu Ship Channel, the terminal sits about 2.5 miles from the Gulf of Mexico.
SCT&E LNG received Order No. 3566 from the Department of Energy on 15 December 2014 granting a authorisation for 30 years to export about 1.60 billion cubic feet per day (bcf/d) of natural gas from the proposed facilities to countries with whom the US has a free trade agreement.
To date, SCT&E LNG has signed four offtake MoU’s for a total of 4.7mtpa of LNG, more than a third of its proposed facility’s total capacity.
