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.”

 

 

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