Cheniere and PetroChina sign long-term LNG SPA

Under the SPA, PetroChina’s subsidiary, PetroChina International Company Limited (PCI), has agreed to purchase up to approximately 1.8 million tpy of LNG from Cheniere Marketing on an FOB basis. Deliveries under the SPA will begin in 2026, reach the full 1.8 million tpy in 2028, and continue through 2050. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. Half of the total volume, or approximately 0.9 million tpy, is subject to Cheniere making a positive Final Investment Decision (FID) to construct additional liquefaction capacity at the Corpus Christi LNG terminal beyond the seven-train 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,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “PetroChina is a leading energy company in one of the largest and fastest growing markets for LNG. This SPA increases Cheniere’s long-term sales to PetroChina to approximately 3 million tpy, and we are proud to support China’s progress toward a lower-carbon future with our reliable, cleaner burning LNG.”

Commenting on the agreement, Mr. Tian Jinghui, Executive Chairman of PCI, stated: “Natural gas continues to play a vital role in enabling the energy transition in China. We are pleased to further expand our co-operation with Cheniere in delivering LNG, one of the cleanest fuel choices to our millions of customers for many years to come.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21072022/cheniere-and-petrochina-sign-long-term-lng-spa/