Cheniere, CPC Corp ink 25-year LNG supply deal

Houston-based LNG exporter Cheniere Energy signed a liquefied natural gas sale and purchase agreement with Taiwan’s CPC Corporation.

CPC has agreed to purchase approximately 2 million tonnes per annum of LNG from Cheniere Marketing on a delivered ex-ship basis for a term of 25 years.

The contract will begin in 2021, Cheniere said, adding that the purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.

Citing a CPC spokesperson, Reuters reports the deal is valued at $25 billion based on the current prices.

The SPA follows a heads of agreement the two companies signed early July.

Cheniere owns and operates the Sabine Pass LNG export facility in Louisiana, one of only two facilities currently exporting the US liquefied natural gas. The company is also developing its second project the Corpus Christi LNG in Texas.

CPC chairman Tai Chein noted that Qatar, Australia and the USA are regarded as the coming three main pillars of the global LNG exporting.

The Taiwanese company has already been importing substantial volumes of LNG each year from Qatar and Australia with Chein adding that the deal with Cheniere “represents not only a step up in the volume of LNG imported into Taiwan from North America but also a strengthening of the long-term cooperation between CPC and Cheniere.”

In addition, the deal goes in line with CPC’s objective to diversify LNG supply channels and stabilize the energy supply into the Taiwan market.

LNG World News Staff