Cheniere Energy, Inc. LNG entered into a long-term gas supply agreement with ARC Resources, a prominent Canadian natural gas producer, and an LNG sale and purchase agreement with OMV, one of Austria’s largest listed industrial companies. These deals represent a substantial boost for Cheniere's LNG portfolio and underscore the company’s commitment to delivering reliable, clean-burning energy to customers worldwide.
Long-Term Gas Supply Agreement
According to Cheniere’s long-term gas supply agreement with ARC Resources, the latter will provide the former with 140,000 MMBtu of natural gas per day for a period of 15 years. This agreement is a critical step for Cheniere, as it will help ensure a reliable source of gas for Cheniere’s liquefaction facilities.
The gas supplied will be used to produce LNG at Cheniere's Sabine Pass Liquefaction facility in Louisiana. LNG is a clean-burning fuel that can be transported by ship to markets around the world. Cheniere is one of the world's largest producers of LNG, and the company's Sabine Pass facility is the largest LNG export terminal in the United States.
The long-term gas supply agreement with ARC Resources will help ensure that Cheniere can continue to meet the growing global demand for LNG. The agreement is also a significant boost for ARC Resources, as it will provide the company with a stable market for its natural gas production.
LNG Sale and Purchase Agreement With OMV
In addition to the gas supply agreement with ARC Resources, Cheniere has also secured an LNG sale and purchase agreement with OMV, a multinational energy company. The agreement will see Cheniere supply OMV with up to 12 LNG cargoes per year, equivalent to approximately 0.85 million tons per annum (mtpa) of LNG.
The LNG supplied under the agreement will be delivered to OMV's regasification terminal in the Netherlands. OMV is a major player in the European energy market, and the agreement will help secure the company's supply of natural gas.
The LNG sale and purchase agreement with OMV is a further testament to Cheniere's position as a leading provider of LNG to global markets. The agreement will strengthen Cheniere's relationship with OMV. It will also help diversify Cheniere's customer base.
Zacks Rank and Key Picks
Currently, LNG carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. OII and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $44.33 billion. The company currently pays a dividend of $1.79 per share, or 4.91%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
Oceaneering International is worth $2.09 billion. In the past year, its shares have risen 36%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Liberty Energy is valued at $3.30 billion. LBRT currently pays a dividend of 20 cents per share, or 1.02%, on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to North American onshore exploration and production companies.
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