Cheniere and CPC Reach Long-Term Agreement for LNG Sale and Purchase

Cheniere Energy, Inc. (“Cheniere” or the “Company”) has recently made an announcement about a significant development in the liquefied natural gas (“LNG”) sector. Cheniere Marketing International LLP (“Cheniere Marketing”), a subsidiary of Cheniere, has signed a long-term sale and purchase agreement (“SPA”) with CPC Corporation, Taiwan (“CPC”).

This agreement entails the sale of up to 1.2 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing to CPC, on a delivered basis starting from 2026 through 2050. The purchase price for the LNG under this SPA will be linked to the Henry Hub price, with an additional fixed fee. Notably, this agreement builds upon the existing 2 mtpa SPA initiated in 2018 between Cheniere Marketing and CPC, which came into effect in 2021 and has a 25-year term.

Jack Fusco, Cheniere’s President and Chief Executive Officer, expressed satisfaction with this additional long-term SPA, highlighting the company’s long-standing partnership with CPC. He emphasized that this agreement will further strengthen CPC’s position in Taiwan’s energy sector while supporting Cheniere’s brownfield liquefaction capacity expansions. Fusco credited Cheniere’s operational excellence, reliability, and customer-centric approach for fostering this significant expansion of their commercial ties. He anticipates continued provision of secure and reliable LNG to CPC well into the latter half of this century under this newly inked long-term contract.

Cheniere Energy, Inc. leads the LNG export market in the United States, offering a clean, secure, and cost-effective energy solution to meet the escalating global demand for natural gas. With a comprehensive suite of LNG services ranging from gas procurement and transportation to liquefaction, vessel chartering, and delivery, Cheniere boasts one of the world’s largest liquefaction platforms. Their operations include facilities at Sabine Pass and Corpus Christi on the U.S. Gulf Coast, collectively producing over 52 mtpa of LNG, with an additional 9 mtpa under construction. Cheniere aims to expand liquefaction operations and undertake other projects across the LNG value chain, underscoring the company’s commitment to advancing the LNG sector’s growth trajectory.

CPC Corporation, Taiwan, Taiwan’s state-owned oil and gas company, was founded in 1946 and has played a pivotal role in ensuring stable energy supply in the domestic market. CPC’s diverse business activities encompass oil and gas exploration, refining, petrochemicals, and natural gas imports in Taiwan. As the country’s primary natural gas importer and supplier, CPC is instrumental in supporting Taiwan’s energy security goals and maintaining a reliable energy landscape.

In conclusion, the newly established long-term LNG sale and purchase agreement between Cheniere and CPC signifies a significant milestone in the LNG sector, underlining Cheniere’s commitment to sustainable growth and fostering enduring partnerships to meet global energy demands effectively.