Cheniere Signs Supply Deals with CNPC

Cheniere Energy announced February 9 it has signed a pair of LNG sale and purchase agreements (SPA) with China National Petroleum Corporation (CNPC) covering the supply of 1.2mn metric tons/year (mt/y) over terms extending to 2043.

The agreements, between Cheniere subsidiaries Corpus Christi Liquefaction and Cheniere Marketing and CNPC subsidiary PetroChina International, provide for a portion of the supply to begin in 2018 and the balance to begin in 2023. The purchase price for the LNG will be indexed to the Henry Hub price plus a fixed component, Cheniere said.

The agreements build upon a memorandum of understanding signed by Cheniere and CNPC in November 2017, during president Donald Trump’s state visit to China, and will assist in the commercialisation of the 4.5mn mt/y Train 3 at Corpus Christi.

“We expect these agreements to support the development of Corpus Christi Train 3, and we are now focused on completing the remaining necessary steps to reach a final investment decision later this year,” Cheniere CEO Jack Fusco said.