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Clean Fuel

about 4 years ago

PetroChina to buy LNG from Cheniere’s Corpus Christi LNG terminal

PetroChina and Cheniere Energy have signed a long-term LNG sale and purchase agreement (SPA) relating to the Corpus Christi LNG terminal.

1 minutes read
PetroChina to buy LNG from Cheniere's Corpus Christi LNG Terminal
Courtesy of Cheniere

PetroChina and Cheniere Energy have signed a long-term LNG sale and purchase agreement (SPA) relating to the Corpus Christi LNG terminal.

Under the SPA, PetroChina subsidiary PetroChina International Company (PCI) agreed to buy up to approximately 1.8 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis.

Deliveries will begin in 2026, reach the full 1.8 mtpa 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 mtpa, is subject to Cheniere making a positive final investment decision to construct additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage 3 Project.

“We are pleased (…) sign our first LNG contract that crosses over into the second half of this century,” said Jack Fusco , Cheniere’s CEO. “This SPA increases Cheniere’s long-term sales to PetroChina to approximately 3 mtpa, and we are proud to support China’s progress toward a lower-carbon future with our reliable, cleaner burning LNG.”

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Tian Jinghui , executive chairman of PCI, added: “Natural gas continues to play a vital role in enabling energy transition in China. We are pleased to further expand our cooperation with Cheniere in delivering LNG.”

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