Houston-based Cheniere Energy on Wednesday announced a deal with the world’s largest energy supplier Electricite de France (EDF) to supply it with up to 26 cargo ship loads of liquefied natural gas (LNG).
LNG is natural gas compressed into liquid form which makes it easier and cheaper to ship in bulk.
Although Cheniere is primarily involved in the LNG terminals business it also does oil and gas exploration in the Gulf of Mexico.
Paris-based utility company EDF is largely owned by the French state.
The deal was actually made between Cheniere subsidiary Cheniere Marketing International and EDF and should see around 100 million MMBtus delivered up to 2018. An MMBtu is a million British thermal units.
The US has been relaxing its own rules regarding LNG export in the hope of becoming a net LNG exporter by 2017. The government, through the Federal Energy Regulatory Commission (FERC) has given permission for a number of designated terminals around the nation to ship the fuel overseas, although industry insiders say the pace of approval is not fast enough.