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Cheniere Energy, Trafigura sign 15-year LNG purchase deal

Published 01/16/2018, 10:08 AM
© Reuters.  Cheniere Energy, Trafigura sign 15-year LNG purchase deal
  • Cheniere Energy (LNG +3.1%) opens higher after commodities trader Trafigura agrees to buy 1M metric tons/year of liquefied natural gas from the company for 15 years beginning in 2019, indexed to the monthly Henry Hub price plus a fee.
  • Independent traders such as Trafigura, Vitol and Glencore (LON:GLEN) have increased their presence in the LNG market in recent years, using their commodity trading expertise as well as their links with developing countries in Africa and Asia.
  • Cheniere CEO Jack Fusco says the deal, which is the first long-term agreement signed between an independent commodities trader and a U.S. producer, will help support the company’s expansion plans.
  • Now read: Cheniere Energy Stock Up 28% Quarter Over Quarter - Does Upside Remain?


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