Anglo-Swiss commodity trading and mining company Glencore said that one of its subsidiaries and Cheniere Marketing, part of Texas-based energy company Cheniere, have entered a binding liquefied natural gas (LNG) sale and purchase agreement (SPA).

As disclosed, the SPA establishes the key commercial terms for the long–term purchase of approximately 0.8 million tonnes per annum of LNG on a free-on-board basis for a term of approximately 13 years beginning in April 2023.

The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.

“We are pleased to partner with Cheniere, one of the World’s leading LNG providers. LNG represents one of our division’s key strategic pillars and this long-term agreement is a testament of our intention to continue to grow the business,” Alex Sanna, Head of Oil Marketing, Glencore, commented.

“This SPA further builds upon Cheniere’s commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year,” Jack Fusco, Cheniere’s President and Chief Executive Officer, said.

The Corpus Christi Stage 3 project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 10 mtpa. It has received all necessary regulatory approvals.