Chinese state oil company Sinochem Group has signed a long-term sales and purchase agreement (SPA) with Cheniere Energy’s marketing subsidiary for the supply of LNG.
From July 2022, Sinochem will initially purchase 0.9 million tpa of LNG from Cheniere, later increasing to 1.8 million tpa, on a free-on-board basis. The purchase price will be indexed to the Henry Hub price, plus a fixed liquefaction fee. The SPA will last for approximate 17.5 years.
The LNG will be supplied from the Stage 3 expansion project of Cheniere’s Corpus Christi LNG export facility. When complete it will include up to seven midscale liquefaction trains with a total expected nominal production capacity of over 10 million tpa.
‘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 our Corpus Christi Stage 3 project,’ says Jack Fusco, Cheniere’s president and CEO.
Cheniere recently signed another long-term LNG SPA with Singapore’s ENN LNG, also for the supply of 0.9 million tpa from the Corpus Christi facility.