Cheniere, PetroChina ink long-term SPA
Cheniere Energy said July 20 its Cheniere Marketing subsidiary had entered into a long-term LNG sale and purchase agreement (SPA) with a subsidiary of PetroChina covering 1.8mn mt/yr of LNG.
Under terms of the SPA, PetroChina International (PCI) will purchase up to 1.8mn mt/yr of LNG from Cheniere Marketing on a free-on-board basis. Deliveries will begin in 2026, reach the full volume in 2028 and continue through 2050.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The purchase price is indexed to Henry Hub prices, plus a fixed liquefaction fee, and half of the total volume, or about 900,000 mt/yr, is subject to Cheniere Energy making a positive final investment decision for additional liquefaction capacity at its Corpus Christi terminal in Texas beyond the 7-stage 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,” Cheniere CEO Jack Fusco said. “This SPA increases Cheniere’s long-term sales to PetroChina to approximately 3mn mt/yr, and we are proud to support China’s progress toward a lower-carbon future with our reliable, cleaner burning LNG.”