NEW YORK (Reuters) ? Cheniere Energy has signed an $8 billion landmark deal with BG Group to ship U.S. natural gas across the globe, in the first export agreement of its kind from the lower 48 states, the company said Wednesday.
Under the deal, which could help reverse the fortunes of the troubled Houston-based company, Cheniere will sell 3.5 million tonnes per year of liquefied natural gas to BG for 20 years from its proposed export plant in Sabine Pass Louisiana, maybe as early as 2015.
It paves the way for Cheniere to secure financing for the project which could be the first LNG export plant built in the United States in nearly 50 years.
"If we start construction by next year then we could be exporting by 2015," Charif Souki told Reuters. "The BG Group contract will help with financing."
The deal is expected to reap $410 million a year, Souki said, a boon for a company which put most of its money into building a huge import terminal that has for three years received only sporadic supply.
Record U.S. natural gas production has swamped the market in recent years, leading to a series of rival export proposals all hoping to sell LNG to higher paying markets in Asia and Europe.
LNG is natural gas cooled to a liquid for shipping overseas.
(Reporting by Edward McAllister; Editing by John Picinich)
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