Cheniere Strikes LNG Supply Deal with PetroChina International
(P&GJ) — Cheniere Energy Inc. has entered into a long-term LNG sale and purchase agreement (SPA) with a subsidiary of PetroChina Company Limited (PetroChina).
“PetroChina is a leading energy company in one of the largest and fastest growing markets for LNG,” Jack Fusco, Cheniere’s president and CEO, said. “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.”
Under the SPA, PetroChina subsidiary PetroChina International Co. Ltd. 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.
“Natural gas continues to play a vital role in enabling energy transition in China,” Tian Jinghui, executive chairman of PCI, said. “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.”
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Woodside May Delay Final Investment Decision on Louisiana LNG to Q2, CEO Says
- Panama Canal Considers Pipeline to Move U.S. Gas to Asia
Comments