US LNG exporting giant Cheniere has signed a long-term deal to supply liquefied natural gas from its Corpus Christi plant to a unit of Thailand’s PTT.
Under the sales and purchase agreement, Cheniere’s unit Corpus Christi Liquefaction will supply one million tonnes per annum of LNG to PTT Global LNG.
According to a Cheniere statement issued on Tuesday, deliveries under the SPA would begin in 2026 and last for 20 years.
The SPA calls for a combination of free-on-board (FOB) and delivered ex-ship (DES) deliveries.
“This customized structure represents a further evolution in Cheniere’s commercial offerings tailored to the specific needs of LNG customers around the world,” it said.
Also, the Henry Hub-indexed deal includes a fixed liquefaction fee.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.
Cheniere recently approved an expansion of the plant and 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 PTT’s direct LNG contract with US LNG producer
Jack Fusco, Cheniere’s CEO welcomed this 20-year SPA with a subsidiary of PTT, the state-owned oil and gas company of Thailand which developed, owns and operates Thailand’s first LNG import terminal.
PTT operates the Map Ta Phut Terminal 1 with a capacity of 11 mtpa and recently received the first cargo at its Nong Fab plant with a capacity of 7.5 mtpa.
“This is the first direct LNG contract from a US LNG producer for PTTGL, and this agreement not only reflects the critical need for long-term, reliable LNG supply across the globe, but also the important role LNG has to play in powering growing economies for decades to come,” Fusco said.
PTT’s president and CEO, Auttapol Rerkpiboon, said the company targets to “be a global LNG player by managing an LNG portfolio of 9 mtpa by 2030.”
“By the end of this year, PTT’s LNG receiving terminals will be able to accommodate regasification capacity up to 19 million tons per year with our new terminal,” Rerkpiboon said.