Cheniere Marketing signs 22-year LNG supply deal with Petrobras for 0.8 mtpa on FOB terms
Cheniere Energy announced on September 29 that its subsidiary Cheniere Marketing has signed a 22-year liquefied natural gas sale and purchase agreement with Petrobras. Under the deal, the Brazilian energy giant will purchase approximately 0.8 million metric tons per annum of LNG on a free-on-board basis — a long-term commitment that stretches well into the second half of this century.
Deal terms and announcement
The agreement was signed on September 29, 2026. Cheniere Marketing — Cheniere’s commercial arm — is the seller, with Petrobras taking delivery of roughly 0.8 mtpa of LNG under free-on-board terms. The contract runs 22 years, pushing supply obligations deep into the second half of this century.
Jack Fusco, Cheniere’s Chairman, President and CEO, welcomed the deal in a prepared statement. “We are pleased to enter into this multi-decade agreement with Petrobras, one of the largest energy companies in the world,” he said. Fusco added that the agreement “reinforces Cheniere’s position as a leading global LNG provider” while delivering what he called fixed-fee cash flow visibility to support further capacity growth.
Gulf Coast facilities, making the financial case for expanding capacity that’s already built and operating rather than pursuing riskier greenfield development.
The FOB structure is worth noting. Under FOB terms, Petrobras takes title to the LNG at the loading point and arranges its own shipping — giving the buyer considerably more flexibility over where the cargo ultimately ends up.
Why the agreement was reached
Cheniere framed the deal partly in commercial terms. Fusco’s statement pointed explicitly to “additional commercial support and fixed fee cash flow visibility” as goals the agreement helps achieve. Long-term contracts do exactly that, locking in revenue streams that make capital investment in new infrastructure easier to justify.
Petrobras’s motivation is more straightforward: supply security. As one of the largest energy companies in the world, it has scale and reach across the entire oil and gas value chain. Locking in a reliable LNG source for more than two decades removes a meaningful degree of market uncertainty from the company’s import planning.
The deal fits a broader pattern in the LNG industry — buyers want supply guarantees, sellers want revenue predictability, and a 22-year agreement satisfies both sides of that equation. Long-term SPAs remain the backbone of global LNG trade even as spot markets have grown. Cheniere specifically cited the agreement’s role in underpinning “further brownfield liquefaction capacity growth” at its existing U.S. Gulf Coast facilities, making the financial case for expanding capacity that’s already built and operating rather than pursuing riskier greenfield development.
Expected consequences for both companies
For Petrobras, the clearest benefit is supply certainty. Sourcing 0.8 mtpa from a well-established U.S. producer under a long-term deal reduces exposure to spot price volatility and potential supply disruptions. The FOB structure adds flexibility on top of that, letting Petrobras manage its own shipping logistics and redirect cargoes when market conditions call for it.
Cheniere, meanwhile, adds another committed revenue stream to an already substantial portfolio of long-term offtake agreements. That contracted backlog is central to how the company supports its capital structure and justifies ongoing investment in liquefaction infrastructure. Deals of this length and volume don’t happen unless both parties have high confidence in the supply source — and that confidence strengthens Cheniere’s position as it pursues additional expansion projects.
Background on Cheniere and the U.S. LNG market
Cheniere is the leading LNG producer and exporter in the United States, headquartered in Houston, Texas. The company operates two major liquefaction facilities: Sabine Pass in Louisiana and Corpus Christi in Texas, both on the U.S. Gulf Coast. Together, those facilities give Cheniere a combined production capacity of approximately 56 mtpa currently in operation.
An additional roughly 5 mtpa of capacity is under construction, a figure that includes estimated debottlenecking opportunities at existing sites. Beyond that, Cheniere is actively pursuing further liquefaction expansion and other developments across the LNG value chain. The company describes itself as a full-service LNG provider, with capabilities spanning gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Offices in London, Singapore, Beijing, Tokyo, Dubai, and Washington, D.C. complement its Houston headquarters.
What this deal means in sum
The Cheniere-Petrobras agreement is, at its core, a straightforward long-term supply contract — but the details matter. Petrobras secures 0.8 mtpa of U.S.-sourced LNG for 22 years on FOB terms, getting both supply reliability and logistical flexibility. Cheniere gains a committed revenue stream and the commercial foundation to support brownfield capacity expansion at its Gulf Coast facilities.
The deal adds to a growing list of long-term offtake agreements that underpin Cheniere Energy‘s business model and reflect sustained global demand for U.S. LNG. With approximately 56 mtpa of capacity already in operation and more under construction, Cheniere is well-positioned to fulfill commitments at this scale. For Petrobras, the agreement locks in a supply relationship that’ll outlast most of the energy infrastructure being built today.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
