LNG

Cheniere becomes first US LNG producer to sign China SPA

Cheniere entered into two LNG sales-and-purchase agreements with China National Petroleum Corp. on Friday.
By Staff reporter 9 February 2018 0 29526

Cheniere has entered into two LNG sales-and-purchase agreements (SPAs) with China National Petroleum Corp. (CNPC) for 1.2 mtpa, the American company announced on Friday. This marks the first time a Chinese company has contracted for offtake from a United States LNG exporter.

CNPC subsidiary PetroChina International will purchase the volume, with a portion of the supply starting in 2018 and the balance beginning in 2023. Each SPA will continue until 2043 and will be indexed to the Henry Hub price plus a fixed component.

The agreements are the...