U.S. natural gas exporter Cheniere Energy (Cheniere) said it entered into two liquefied natural gas (LNG) sale and purchase agreements with China National Petroleum Corporation (CNPC), breaking into the Chinese market for the first time.
CNPC unit PetroChina International Company will purchase approximately 1.2 million tonnes per annum of LNG from Cheniere’s subsidiaries, Corpus Christi Liquefaction and Cheniere Marketing International.
A portion of the supply will begin in 2018 and the balance beginning in 2023 and running through to 2043. The purchase price for LNG will be indexed to the Henry Hub price plus a fixed component, Cheniere said.
“We are pleased to announce these LNG contracts with China National Petroleum Corporation, an important global energy player in one of the largest and fastest growing LNG markets worldwide,” said Jack Fusco, Cheniere’s president and CEO. “These long-term SPAs build upon the Memorandum of Understanding we signed in November, and we look forward to a successful long-term partnership with CNPC. 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.”