MONTREAL (Oil Monster): Cheniere Energy has signed a 22-year liquefied natural gas supply agreement with Brazil's Petrobras, securing another long-term customer for U.S. LNG production as the Brazilian energy company moves to reduce its exposure to volatile spot markets.
Under the agreement announced September 29, 2026, Petrobras will purchase approximately 0.8 million tonnes per annum (mtpa) of LNG from Cheniere Marketing LLC on a free-on-board (FOB) basis.
The agreement gives Petrobras another source of long-term LNG supply as the company seeks greater flexibility in managing its natural gas portfolio.
Petrobras said contracting LNG over longer periods is part of its strategy to reduce exposure to fluctuations in the spot LNG market, strengthen risk management and improve its ability to meet supply commitments.
The contract price and commencement schedule were not disclosed in the companies' announcements.
For Cheniere, the agreement adds another multi-decade customer to its international LNG business and provides additional visibility into future contracted revenue.
Cheniere Chairman, President and CEO Jack Fusco said the agreement reinforces the company's position as a major global LNG supplier while supporting fixed-fee cash flow visibility and potential expansion of existing liquefaction facilities.
The 22-year term means Cheniere expects to continue supplying Petrobras into the second half of this century.
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Cheniere operates the Sabine Pass and Corpus Christi LNG facilities on the U.S. Gulf Coast. The company said its operating liquefaction platform has approximately 56 mtpa of LNG production capacity, with additional capacity under construction.
The Petrobras agreement could also provide commercial backing for future brownfield liquefaction expansion at Cheniere's existing U.S. operations.
Cheniere has continued to expand both its production footprint and its portfolio of long-term international buyers as U.S. LNG export capacity grows.
For Petrobras, the agreement adds another long-term procurement arrangement to its gas portfolio rather than relying solely on shorter-term LNG purchases.
The company said long-term contracted volumes can help reduce its exposure to spot-market volatility while providing greater flexibility and security in meeting its natural gas commitments.
The deal follows other efforts by Petrobras to secure long-duration LNG supplies as the Brazilian company manages domestic gas requirements and its broader energy portfolio.
Source: Cheniere Energy Inc.; Petrobras.
