Houston-based LNG exporter Cheniere Energy signed a liquefied natural gas sale and purchase agreement with Petronas LNG, a unit of the Malaysian state-owned oil and gas company, Petronas.

Petronas LNG has agreed to purchase approximately 1.1 million tons per annum of LNG from Sabine Pass liquefaction project on a free on board basis for a term of 20 years following the date of first commercial delivery for the sixth natural gas liquefaction train.

The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.

Jack Fusco, chairman, president and CEO of Cheniere Partners, said, “this 20-year agreement with Sabine Pass Liquefaction continues our momentum on Train 6, where early engineering, procurement, and site preparation activities have recently commenced ahead of a final investment decision.”

Fusco added the company expects this SPA to support its progress toward a final investment decision in 2019.

Petronas vice president of LNG Marketing & Trading, Ahmad Adly Alias added that this new volume will enhance the company’s supply portfolio.