Published on 25 Jul 2022 on Zacks via Yahoo Finance

Cheniere (LNG) Announces Long-Term LNG Deal With PetroChina

The Houston, TX-based liquefied natural gas (“LNG”) company — Cheniere Energy, Inc. LNG — recently declared that it has signed a long-term LNG sale and purchase agreement with a unit of PetroChina Company Limited PTR.

Per the deal, which runs until 2050, Cheniere’s wholly owned subsidiary, Cheniere Marketing, will sell roughly 1.8 million tons per annum (mtpa) of LNG on a free-on-board basis to PetroChina’s subsidiary.

Cheniere mentioned that deliveries under the agreement would commence in 2026, reaching the full 1.8 mtpa target in 2028 and continuing until the end of the agreement period. The LNG purchase price is indexed to the Henry Hub price plus a fixed liquefaction fee. However, 50% of the total volume or about 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.