Cheniere and CPC Sign 25-Year LNG Sale and Purchase Agreement
August 10 2018 - 10:01PM
Business Wire
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG)
announced today that its subsidiary Cheniere Marketing
International LLP (“Cheniere Marketing”) has entered into a
liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”)
with CPC Corporation, Taiwan (“CPC”). 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.”
About Cheniere
Cheniere Energy, Inc., a Houston-based energy company primarily
engaged in LNG-related businesses, owns and operates the Sabine
Pass LNG terminal in Louisiana. Directly and through its
subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing,
constructing, and operating liquefaction projects near Corpus
Christi, Texas and at the Sabine Pass LNG terminal, respectively.
Cheniere is also exploring a limited number of opportunities
directly related to its existing LNG business.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended June 30, 2018, filed with the Securities and Exchange
Commission.
About CPC
CPC is Taiwan’s state-owned oil and gas company, which was
founded on June 1, 1946 with a mandate to lead Taiwan’s energy
sector. As an enterprise in state ownership, it is responsible for
supplying sufficient and reliable energy to the domestic market.
CPC’s business areas include oil & gas exploration and
production, refining, petrochemicals, lubricants, solvents and
chemicals; it is also Taiwan’s sole importer and supplier of
natural gas, CPC imported nearly 16.5 million tons of LNG in 2017,
making it the world’s 5th largest importer.
Forward-Looking Statements
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180810005465/en/
Cheniere Contacts:InvestorsRandy Bhatia, 713-375-5479Megan Light,
713-375-5492orMedia RelationsEben
Burnham-Snyder, 713-375-5764
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