Houston - November 05, 2021
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) announced today that its subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has entered into a binding liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Sinochem Group Co., Ltd (“Sinochem Group”).
Under the SPA, Sinochem Group has agreed to purchase an initial volume of approximately 0.9 million tonnes per annum (“mtpa”) beginning in July 2022, which increases to 1.8 mtpa. The SPA has a term of approximately 17.5 years and Sinochem Group will purchase the LNG volumes on a free-on-board basis. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.
“We are pleased to announce this long-term LNG contract with Sinochem Group, one of China’s leading state-owned energy companies, and to further Cheniere’s role in providing clean, affordable and reliable energy to the Chinese market for many years to come,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “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.”
The Corpus Christi Stage 3 project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of over 10 mtpa. It has received all necessary regulatory approvals.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tonnes per annum of LNG operating or commissioning. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, filed with the Securities and Exchange Commission.
About Sinochem Group
Headquartered in Beijing, China, Sinochem Group was founded in 1950. It is a state-owned enterprise, one of China’s four largest state oil companies, a leading chemical service provider, one of the largest agricultural inputs (fertiliser, seed and agrochemicals) companies and an integrated modern agricultural service operator. Sinochem Group has established five strategic business units: energy, chemicals, agriculture, real estate and finance. It operates more than 300 subsidiaries around the world. It holds a controlling stake in a number of listed companies, including Sinochem International, Sinofert and China Jinmao. Sinochem Group has over 60,000 staff around the world.
Image by Cheniere Energy, Inc.
Cheniere Energy, Inc. press release