Cheniere and Sinochem Group Sign Long-Term LNG Sale and Purchase Agreement

Cheniere announced today its subsidiary Cheniere Marketing entered into a binding LNG sale and purchase agreement (SPA) with China’s Sinochem Group. Under the agreement Sinochem Group will purchase an initial volume of approximately 0.9 million tonnes per annum of LNG beginning in July 2022. This volume will increase 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.

“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.” said Jack Fusco, Cheniere’s President and Chief Executive Officer.

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. Corpus Christi Stage 3 has received all necessary regulatory approvals. Cheniere has not yet made a final investment decision on the Corpus Christi Stage 3 project.