Cheniere and PTT ink long-term LNG supply deal

U.S. LNG exporter Cheniere Energy has signed a long-term LNG sale and purchase agreement (SPA) with a unit of Thailand’s state-owned energy company PTT.

On 26 July, Cheniere informed that its wholly-owned subsidiary, Corpus Christi Liquefaction (CCL) entered into a long-term LNG deal with PTT Global LNG (PTTGL), a wholly-owned subsidiary of PTT.

Under the SPA, PTTGL has agreed to purchase 1.0 million tonnes per annum (mtpa) of LNG from CCL for twenty years beginning in 2026.

The SPA calls for a combination of free-on-board (FOB) and delivered ex-ship (DES) deliveries. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.

Jack Fusco, Cheniere’s CEO, said: “This is the first direct LNG contract from a U.S. 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.”

“LNG or gas is a major transition fuel which supports both energy security and sustainability. Our ambition is to move forward with the future energy while ensuring energy security,” said Auttapol Rerkpiboon, PTT’s CEO.

“We actively engage in the LNG business and target to be a Global LNG Player by managing an LNG portfolio of nine mtpa by 2030. By the end of this year, PTT’s LNG receiving terminals will be able to accommodate regasification capacity up to 19 mtpa with our new terminal,” Rerkpiboon added.