Cheniere Energy subsidiary Cheniere Marketing International had signed a 25-year agreement to supply LNG to Taiwan’s CPC.
Image: A gas pipeline project. Photo: courtesy of outgunned21/Freeimages.com.
CPC has agreed to purchase approximately 2 million tonnes per annum of LNG from Cheniere Marketing on a delivered ex-ship basis for a term of 25 years. The contract will begin in 2021. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
“We are pleased to announce this long-term SPA with CPC, one of the LNG market’s most experienced and well-respected companies. The SPA follows a Heads of Agreement we signed with CPC in June, which was the result of long-term discussions and development of a commercial relationship with CPC over several years,” said Jack Fusco, Cheniere’s President and CEO.
“This SPA demonstrates Cheniere’s growing capabilities to deliver tailored solutions to meet the energy needs of customers worldwide, and further reinforces our position as a premier global LNG provider.”
Source: Company Press Release