Shares of Cheniere Energy Inc., an energy company primarily engaged in Liquefied Natural Gas (LNG)-related businesses, are soaring in today’s trading after the company today announced that its subsidiary signed its first sale and purchase agreement.
At last check, Cheniere Energy shares were trading 53.27% higher at $9.38, with volume up from daily average of 2.52 million to 14.44 million.
Cheniere Energy’s subsidiary, Sabine Pass Liquefaction LLC, signed a sale and purchase agreement with BG Gulf Coast LNG LLC, a subsidiary of BG Group Plc, under which BF will purchase 3.5 million tones per annum of LNG. Sabine Pass has authorization from the U.S. Department of Energy to export up to 16 million tones per annum of LNG.
Under the terms of the agreement, Sabine will be paid a fixed sales charge by BG for the full annual contract quantity. BG will also pay Sabine a contract sales price for LNG purchases based on the applicable Henry Hub index traded on the NYMEX.
Commenting on the agreement, Charif Souki, chairman and CEO of Cheniere Energy, today said that BG is one of the largest participants in the global LNG markets and will be strong foundation customer for Sabine Pass liquefaction project.
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