Cheniere Converts Taiwan HOA to SPA

US LNG developer Cheniere Energy said August 10 it has converted a heads of agreement negotiated in June with Taiwan’s CPC Corp. into a 25-year sales and purchase agreement (SPA).

The SPA covers the delivery by Cheniere of up to 2mn metric tons/year of LNG on an ex-ship basis, starting in 2021. The purchase price is indexed to the monthly Henry Hub price, plus a fee.

“We are pleased to announce this long-term SPA with CPC, one of the LNG market’s most experienced and well-respected companies,” Cheniere CEO Jack Fusco said.

State-owned CPC is Taiwan’s sole importer and supplier of natural gas and in 2017 it imported nearly 16.5mn metric tons, making it the world’s fifth largest LNG importer.