February 11, 2011 / 3:17 PM / 9 years ago

UPDATE 1-Cheniere signs LNG supply pact with Basic Energy

* Cheniere would supply 600,000 tonnes per year

* Supply would be for Dominican Republic power cos

NEW YORK, Feb 11 (Reuters) - Cheniere Energy (LNG.A) has signed a pact to supply liquefied natural gas to Basic Energy in the Dominican Republic from its proposed export plant in Louisiana, the company said on Friday.

Under the non-binding agreement, Cheniere would supply up to 600,000 tonnes of LNG per year to Basic Energy for its subsidiaries Empresa Generadora de Electricidad Haina and Compania de Electricidad de San Pedro de Macoris.

“They are a great example of the emerging markets we are targeting for LNG sales, where natural gas is being sought out by power producers to replace fuel oil,” Cheniere Chief Executive Charif Souki said in a statement.

The Dominican Republic has one LNG import terminal supplied by BP (BP.L) from Trinidad.

The companies will now work toward firming up the agreements. Any deal is dependent on Cheniere getting approval to build the export plant, which it has said could be online by 2015. The export plant will be built on the site of Cheniere’s existing import terminal at Sabine Pass.

Cheniere has already signed other pacts with various companies looking to export LNG from Sabine. These tentative supply deals total more than the 7 million tonnes per year of LNG capacity that Cheniere initially intends to build at Sabine. [ID:nN27128081] (Reporting by Edward McAllister; Editing by Lisa Shumaker)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below