EQT signs 20-year deal to buy LNG from Commonwealth LNG's Louisiana plant

[LNG tanker ship]
Sky_Blue/iStock via Getty Images

EQT Corp. (NYSE:EQT [https://seekingalpha.com/symbol/EQT]) said post-market Monday it agreed to purchase [https://seekingalpha.com/pr/20224978-eqt-signs-20-year-lng-sale-and-purchase-agreement-with-commonwealth-lng] 1M metric tons/year of liquefied natural gas facility for 20 years from Commonwealth LNG's export facility under development on the Louisiana Gulf Coast.

EQT (NYSE:EQT [https://seekingalpha.com/symbol/EQT]), which will purchase the LNG on a free-on-board basis at a price indexed to Henry Hub, said it will market and optimize its cargoes internationally.

The additional export capacity will allow EQT (NYSE:EQT [https://seekingalpha.com/symbol/EQT]) to further expand its domestic direct-to-customer strategy into the global energy markets, the company said.

Last week [https://seekingalpha.com/news/4492075-nextdecade-seals-20-year-deal-to-supply-eqt-with-lng-from-rio-grande-export-plant], EQT (EQT [https://seekingalpha.com/symbol/EQT]) signed a similar 20-year deal with NextDecade to buy 1.5M tons/year of LNG from the Rio Grande export facility in Texas.

The Commonwealth LNG facility is designed to produce 9.5M metric tons/year of LNG and received approval from the Federal Energy Regulatory Commission in June; the company has said it plans to make a final investment decision in this year's Q4, with first production targeted for 2029.

MORE ON EQT

* EQT: All Roads Lead To Higher Natural Gas Prices [https://seekingalpha.com/article/4818161-eqt-all-roads-lead-to-higher-natural-gas-prices]
* EQT: Benefiting From Natural Gas Fundamentals [https://seekingalpha.com/article/4818052-eqt-benefiting-from-natural-gas-fundamentals]
* EQT: The Smart Money Is Bullish, Buy The Dip [https://seekingalpha.com/article/4817798-eqt-the-smart-money-is-bullish-buy-the-dip]