Supply Chain Monitoring
At Cheniere, we are committed to fostering responsibility across our value chain, from our supplier network to the impact of our products. As one of the largest consumers of natural gas in the United States, we are dedicated to realizing our vision to bring clean, secure, and affordable energy to the world.
Our supply chain organization’s mission is to deliver sustainable breakthrough levels of value to our businesses by utilizing our scale and capabilities, leveraging the enterprise spend and securing distinctive supply relationships. Health and safety requirements are mandated in all of our contracts with our contractors.
Our contracts require suppliers to comply with all applicable laws, including labor, Health, Safety & Environmental (HSE) laws. We require that the Service Provider actively promote safe working conditions and safe work practices, which will ensure all workers conduct operations in a safe and healthful work environment. The Service Provider’s performance of work shall strictly comply with OSHA, the Emergency Planning and Community Right-To-Know Act (“EPCRA”) and all other applicable laws. We require our contractors to complete all orientation as well as appropriate training required to obtain access to the Sites and perform the work in accordance with Company HSE requirements. Any violation of Company HSE requirements is deemed as material breach of the contract with the Service Provider and failure to adhere to, demonstrate compliance with, or ensure Contractor Personnel comply with Company HSE requirements may result in a for cause termination of the agreement.
We conduct risk assessments of suppliers during the prequalification process, as well as on an ongoing basis, to ensure suppliers are meeting minimum H&S requirements and financial health profiles. We also receive non-compliance notifications for insurance lapses and HSE failing grades through a monthly non-compliance report. Contractors may be required through our contracts to provide reports regarding non-compliance. In addition, there are substantial and detailed requirements attached to our contracts covering relevant regulations and requirements for suppliers (e.g. OSHA, EPA, DOT regulations), which specifically include certain requirements concerning the preservation and protection of the environment. Furthermore, our contracts allow us to suspend work for any reason, including pursuant to a case of non-compliance.