Cheniere inks 22-year LNG supply deal with Petrobras

• Petrobras will purchase roughly 0.8 million tonnes of LNG annually on a free-on-board basis under the long-term contract
• The agreement provides Cheniere with 'fixed fee cash flow visibility' to underpin brownfield liquefaction capacity expansion
• This follows Cheniere's February deal with Taiwan's CPC Corp for up to 1.2 mtpa from 2026 through 2050, showing continued momentum in long-term LNG contracting

Summary: Cheniere Signs 22-Year LNG Supply Deal with Petrobras

Key Transaction Details:

US-based Cheniere Energy announced its marketing unit has signed a 22-year liquefied natural gas (LNG) supply agreement with Brazil's Petrobras. Under the deal, Petrobras will purchase approximately 0.8 million tonnes per annum (mtpa) of LNG on a free-on-board basis from Cheniere Marketing.

Strategic Rationale:

For Cheniere, the long-term contract provides crucial commercial support and predictable cash flow to fund brownfield liquefaction capacity expansion projects. Long-term contracts with creditworthy buyers are essential for LNG developers to secure financing for multibillion-dollar export facilities.

For Petrobras, the agreement reduces exposure to volatile spot LNG market prices while securing supply flexibility for Brazil's gas and power sector. The Brazilian state oil company had indicated in March 2024 it was pursuing additional long-term import agreements with US LNG suppliers.

Market Context:

This deal follows Cheniere's February 2025 agreement with Taiwan's CPC Corp to supply up to 1.2 mtpa of LNG from 2026 through 2050, demonstrating the company's continued success in securing long-term commitments. These contracts underscore the global trend toward long-term LNG supply agreements as buyers seek price stability and sellers require financing certainty for infrastructure investments.

Companies Involved:

• Cheniere Energy (US LNG exporter)
• Petrobras (Brazil state oil company)

The agreement strengthens Cheniere's position as a leading US LNG exporter while supporting Petrobras' energy security strategy in Latin America's largest economy.