Under the 20-year deal that will begin in 2019, Cheniere will supply LNG from the Corpus Christi liquefaction project, Texas, which is under construction.
Biobiogenera executive director Juan José Gana said: "This sale and purchase agreement (SPA) means certainty about the future of electricity supply for consumers, who today experience problems due to the high level of prices that affect them, and which limits the development opportunities of the country."
The LNG, which will be delivered, stored and regasified at the proposed floating storage regasification unit (FSRU), Penco Lirquén LNG terminal, will be used by Central El Campesino to supply as feedstock to a 640MW gas-fired combined-cycle power plant in Chile.
Cheniere marketing executive vice-president Meg Gentle said: "We look forward to being a reliable supplier of LNG to Central El Campesino for this important new gas-fired power plant, which will increase the availability of power and have a positive impact on the Chilean electricity market.
"This transaction is consistent with our strategy of working with customers on gas to power solutions and developing downstream LNG markets."
Jointly built by the Chilean company Biobiogenera and Electricite de France (EDF), the power plant will supply about 480MW of the power output to local distribution companies.
The power generated from the facility will be supplied into Chile’s Central Interconnected System (SIC).
