HOUSTON--(BUSINESS WIRE)--Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) announced today that it has entered into two liquefied natural gas (“LNG”) sale and purchase agreements (“SPA”) with China National Petroleum Corporation (“CNPC”).
Under the SPAs with Cheniere’s subsidiaries, Corpus Christi Liquefaction, LLC and Cheniere Marketing International LLP, CNPC subsidiary PetroChina International Company Limited will purchase approximately 1.2 million tonnes per annum of LNG, with a portion of the supply beginning in 2018 and the balance beginning in 2023. The term of each SPA continues through 2043. The purchase price for LNG will be indexed to the Henry Hub price plus a fixed component.
“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.”
Cheniere Energy, Inc. is the leading exporter of U.S. liquefied natural gas. Cheniere is currently operating and constructing its Sabine Pass LNG facility in Louisiana and is constructing a second liquefaction facility near Corpus Christi, Texas. When both projects are complete, Cheniere is expected to be a top-5 global supplier of LNG. Cheniere’s LNG is based on natural gas sourced from the robust, transparent, and liquid U.S. market, which provides access to abundant and low-cost gas resources. Cheniere is a full-service LNG provider, sourcing gas for its facilities and allowing customers to load cargoes at Cheniere’s LNG facilities or receive them at regasification facilities around the world. To date, approximately 300 cumulative LNG cargoes have been exported from the Sabine Pass LNG facility. Cheniere is based in Houston, Texas, and has additional offices in London, Tokyo, Washington, Singapore, Santiago and Beijing.
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, 2017, filed with the Securities and Exchange Commission.
China National Petroleum Corporation, based in China, is the world’s 3rd largest oil company and China’s largest oil and gas producer and supplier. CNPC has interests in oil and gas assets in more than 30 countries. CNPC contributed more than 70% of China’s natural gas supply in 2017. CNPC owns and operates 3 LNG receiving and regasification terminals in China and is in the advanced stages of developing additional facilities in China for the import of additional LNG.
This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements and (vi) statements regarding future discussions and entry into contracts. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.