Antero inks gas supply deal with Cheniere

Supply deal: Cheniere to buy gas for Sabine Pass from Antero

US independent Antero Resources has signed a firm transportation deal with Cheniere Energy to supply gas to the LNG producer's Sabine Pass liquefaction facility on the Louisiana coast.

Antero will send 5 million cubic feet per day of gas at Nymex-based pricing to the Gulf Coast via existing Antero transportation agreements.

The agreement with Cheniere allows for 5 MMcfd of incremental increases to a total of 200 MMcfd, as each of the four trains are placed into service.

The deal will become effective upon notification from Cheniere that operations have commenced at the first at the facility in Cameron Parish, Louisiana, Antero said.

Sabine Pass, a six-train plant, each with capacity of 4.5 million tonnes per annum, is expected to start up as soon as next year.

For Antero, the deal secures a market for its booming gas production concentrated in the Appalachian basin.

The company said on Thursday that production in the second quarter averaged 891 million cubic feet equivalent per day, up 94% from a year earlier and 13% sequentially.

Proved reserves rose 19% from year-end 2013 to 9.1 trillion cfe.

"With strong results in our Marcellus and Utica rich gas areas in early July, the company recently surpassed 1 Bcfed of net production for the first time in its history," said chief executive Paul Rady.

"With second quarter 2014 production meeting our plan and current production in excess of 1 Bcfed, we expect to meet our 2014 production guidance as well as our 45% to 50% growth targets for both 2015 and 2016."

Chief financial officer Glenn Warren added: "Antero has the largest firm transport portfolio of any Appalachian producer with an average of 3.4 Bcfd by 2016, thereby reducing our exposure to Appalachian pricing indices to 32%.

"Our firm transportation portfolio gives us great visibility on production growth and basis exposure. We now have sufficient firm transportation capacity to accommodate Antero's accelerated development programme for the foreseeable future while also securing access to the most favourable pricing regions."

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