Analysis: Cheniere, BG LNG Export Agreement Does Not Include Traditional Take-Or-Pay Provisions
Posted on Nov 2, 2011 in Financing, LNG Exports, Markets and Competition | Comments Off on Analysis: Cheniere, BG LNG Export Agreement Does Not Include Traditional Take-Or-Pay Provisions
An analysis of the recent Cheniere-BG LNG export agreement carried in World Gas Intelligence [subscription required] notes that the agreement does not contain a take-or-pay provision that is common for LNG terminal use agreements. The analysis concludes that although the agreement with BG helps, Cheniere needs to secure similar agreements from other future LNG exporters in order to secure financing for the planned LNG liquefaction project at Sabine Pass LNG.