The Strategist

Cheniere Energy agree LNG supplies with German BASF

08/23/2023 - 10:05

The gas business stated that the annual delivery might reach 800,000 tons.

US gas giant Cheniere Energy signed a long-term deal to supply Germany's BASF with up to 800,000 tons of LNG per year starting in 2026.

Cheniere Energy, Inc. stated that Cheniere's subsidiary, Cheniere Marketing, LLC, has signed a long-term sales and purchase deal with BASF for liquefied natural gas. The German company agreed to "purchase up to 800,000 tons of LNG annually until the end of 2043," according to the terms of the agreement. Delivery is expected to begin in the middle of 2026.

The goal of the arrangement is "ensuring the stability of the supply chain" of LNG to Germany, according to Cheniere Energy executive vice president Anatol Feygin.

In mid-July Handelsblatt cited data from Germany's regulatory body, the Federal Network Agency. It stated that six months after the new terminals opened, the amount of LNG delivered to Germany through them accounted for just 6.4% of all LNG imports into the country.