Cheniere Energy has said it will supply Sinochem Group with up to 1.8 million tonnes per annum (mtpa) of liquified natural gas (LNG) under a newly signed purchase agreement.
Beginning in July (2022), the deal will see Sinochem purchase an initial 0.9 mtpa of LNG, which will then be increased to 1.8 mtpa.
The deal has a term of approximately 17.5 years and Sinochem will purchase the LNG volumes on a free-on-board basis. LNG purchased under the agreement is indexed to the Henry Hub price, plus a fixed liquefaction free.
Jack Fusco, President and CEO of Cheniere, said, “We are pleased to announce this long-term LNG contract with Sinochem Group, one of China’s leading state-owned energy companies, and to further Cheniere’s role in providing clean, affordable and reliable energy to the Chinese market for many years to come.”
“This SPA once again demonstrates Cheniere’s ability to tailor solutions in order to meet the needs of LNG consumers worldwide, which is enabled by the scale of our platform and the reliability of our operations.”
“In addition, the SPA further reinforces our commercial momentum, and once again confirms the strength of the global LNG market and the global call for investment in additional LNG capacity, including Corpus Christi Stage 3 project.”