Cheniere Energy Inc.’s subsidiary Cheniere Marketing LLC signed a long-term LNG sale and purchase agreement (SPA) with Galp Energia subsidiary Galp Trading SA, the companies announced in an Aug. 5 press release.

Under the 20-year SPA, Galp Trading will purchase 0.5 million tonnes per annum (mtpa) from Cheniere Marketing on a free-on-board basis for a Henry Hub purchase price and a fixed liquefaction fee.

Deliveries will begin in the early 2030s and remain subject to a final investment decision on the second train of the Sabine Pass Liquefaction Expansion Project. Galp will purchase a limited number of cargoes prior to the start of the second train.

The Sabine Pass expansion will add up to 20 mtpa of LNG capacity.

Cheniere submitted an application to the Federal Energy Regulatory Commission in February for the authorization to site, construct and operate the expansion project. The company also submitted an application to the Department of Energy to export LNG to Free-Trade Agreement (FTA) and non-FTA countries.

“We look forward to providing our flexible, reliable and cleaner burning LNG to Galp under this new long-term agreement,” said Jack Fusco, Cheniere’s president and CEO. “This SPA is expected to provide further support for the SPL Expansion Project, and demonstrates continued momentum as we progress development of the project.”