BG Group purchases 3.5 mtpa of LNG from Sabine Pass

Natural gas company BG Group has signed a fully-termed sale and purchase agreement with Sabine Pass Liquefaction, a subsidiary of Cheniere Energy Partners, for the purchase of 3.5 million tonnes per annum (mtpa) of liquefied natural gas (LNG) over a 20-year period from the Sabine Pass LNG terminal located in Louisiana, US.

The agreement, which is subject to certain conditions and approvals, is the first long-term LNG purchase agreement from a project on the US Gulf Coast, allowing BG Group to secure LNG volumes for export from the US to international gas markets.

LNG exports are expected to commence in 2015.

Construction of the liquefaction facilities at Sabine Pass is expected to commence in 2012, with the initial phase to consist of two trains capable of producing up to 9 mtpa of LNG.