Arc Resources secures major long-term natural gas supply deal
- Arc Resources secures long-term supply agreement with Cheniere Energy subsidiary
- Agreement is for a term of 15 years
- Arc will supply 140 billion British thermal units a day of natural gas
- Commercial operations of Sabine Pass Stage 5 Expansion Project anticipated by 2029
- Arc plans to use existing contracted pipeline capacity to the U.S. Gulf Coast
- Price of liquefied natural gas based on Dutch Title Transfer Facility price
Arc Resources has announced a significant long-term supply agreement with a subsidiary of Cheniere Energy. The agreement, which is for a term of 15 years, will see Arc supplying 140 billion British thermal units (BTUs) of natural gas per day. The deal is the second between the two companies, with Arc already having a long-term agreement to supply Cheniere’s Corpus Christi Stage III expansion. Arc plans to use its existing contracted pipeline capacity to deliver the natural gas to the U.S. Gulf Coast. The financial details of the agreement were not disclosed, but Arc will receive a liquefied natural gas price based on the Dutch Title Transfer Facility price. The commercial operations of the Sabine Pass Stage 5 Expansion Project, where the natural gas will be supplied, are expected to begin by 2029.
Public Companies: Arc Resources (ARC), Cheniere Energy (LNG)
Private Companies: Sabine Pass Liquefaction Stage V, ARC Resources U.S., Cedar LNG
Key People:
Factuality Level: 8
Justification: The article provides specific details about the agreement between ARC Resources and Cheniere Energy’s subsidiary. It mentions the duration of the agreement, the amount of natural gas to be supplied, and the anticipated commercial operations date. It also mentions the use of existing pipeline capacity and the pricing based on the Dutch Title Transfer Facility price. However, it lacks financial details and does not provide any information about the credibility or reputation of the sources involved.
Noise Level: 7
Justification: The article provides information about a natural gas supply agreement between ARC Resources and Cheniere Energy’s subsidiary. It mentions the duration of the agreement, the amount of natural gas to be supplied, and the anticipated commercial operations date. However, it lacks details on the financial aspects of the agreement and does not provide any analysis or insights into the long-term trends or consequences of the deal. The article also briefly mentions other agreements ARC Resources has, but these are not directly related to the main topic. Overall, the article contains relevant information but lacks depth and analysis.
Financial Relevance: Yes
Financial Markets Impacted: Natural gas markets, Cheniere Energy, ARC Resources
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses a natural gas supply agreement between ARC Resources and a subsidiary of Cheniere Energy. There is no mention of any extreme event in the article.
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