Cheniere Energy, Inc. (Cheniere) (NYSE American: LNG) announced today that its wholly-owned subsidiary, Cheniere Marketing, LLC (Cheniere Marketing), has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with a subsidiary of PetroChina Company Limited (PetroChina).
Under the SPA, PetroChina subsidiary PetroChina International Company Limited (PCI) has agreed to purchase up to approximately 1.8 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on a free-on-board basis. Deliveries under the SPA will begin in 2026, reach the full 1.8 mtpa in 2028, and continue through 2050. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. Half of the total volume, or approximately 0.9 mtpa, is subject to Cheniere making a positive final investment decision to construct additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage 3 Project.
“We are pleased to build upon our existing and successful long-term relationship with PetroChina and sign our first LNG contract that crosses over into the second half of this century,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “PetroChina is a leading energy company in one of the largest and fastest growing markets for LNG. This SPA increases Cheniere’s long-term sales to PetroChina to approximately 3 mtpa, and we are proud to support China’s progress toward a lower-carbon future with our reliable, cleaner burning LNG.”
Commenting on the agreement, Mr. Tian Jinghui, Executive Chairman of PCI stated “Natural gas continues to play a vital role in enabling energy transition in China. We are pleased to further expand our cooperation with Cheniere in delivering LNG, one of the cleanest fuel choices to our millions of customers for many years to come.”
Source: Cheniere