US LNG exporting giant Cheniere has signed a long-term deal to supply liquefied natural gas to a unit of state-owned PetroChina.
Under the sales and purchase agreement, Cheniere’s unit Cheniere Marketing will supply 1.8 million tonnes per annum of LNG on a free-on-board basis to PetroChina International.
According to a Cheniere statement issued on Wednesday, deliveries under the SPA would begin in 2026, reach the full 1.8 mtpa in 2028, and continue through 2050.
Also, the Henry Hub-indexed deal includes a fixed liquefaction fee.
Half of the total volume, or about 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 recently approved seven-train expansion project.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.
Under the approved expansion, Cheniere will add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.
“First LNG contract that crosses over into the second half of this century”
“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,” Jack Fusco, Cheniere’s CEO said in the statement.
He said PetroChina is a leading energy company in one of the largest and fastest growing markets for LNG.
In addition, this SPA increases Cheniere’s long-term sales to PetroChina to about 3 mtpa, and “we are proud to support China’s progress toward a lower-carbon future,” Fusco said.
Tian Jinghui, executive chairman of PCI said that “natural gas continues to play a vital role in enabling energy transition in China.”
Jinghui welcomed the new deal with Cheniere and to further expand their cooperation in delivering LNG, one of the “cleanest fuel choices to our millions of customers for many years to come.”
