Cheniere seals another long-term LNG deal with Taiwan’s CPC

Under the SPA, CPC has agreed to purchase up to 1.2 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a delivered basis from 2026 through 2050.

Cheniere said in a statement that the long-term purchase price for the LNG to be delivered under the SPA will be indexed to the Henry Hub price, plus a fixed fee.

The SPA is in addition to the approximately 2 mtpa SPA entered into in 2018 by Cheniere Marketing and CPC, which commenced in 2021 and has a term of 25 years.

Jack Fusco, Cheniere’s president and CEO, said, “This SPA will further enhance CPC’s capability to serve Taiwan’s long-term energy priorities, while also providing additional commercial support for Cheniere’s brownfield liquefaction capacity developments.”

Cheniere is expanding its Corpus Christi terminal to reach over 30 mtpa in total liquefaction capacity later this decade.

The company also plans the Corpus Christi Liquefaction Stage 4 project to add approximately 24 mtpa of LNG capacity, while it also plans to add up to 20 mtpa capacity at the 30 mtpa Sabine Pass facility.

On the other hand, Taiwan currently imports LNG via two terminals operated by state-owned CPC.

CPC operates the Yung-An LNG terminal with a capacity of 10.5 mtpa and the Taichung LNG import terminal with a capacity of 6 mtpa. The firm is also expanding its Taichung LNG terminal.

In addition, CPC said in October last year it was nearing the launch of the Guantang LNG terminal, its third LNG import facility in Taiwan.

CPC is also working on the Kaohsiung intercontinental LNG terminal and the Zhouji LNG terminal.