Chinese Chemical Corporation Accordant With Cheniere Energy

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  • Venture Global also has been active on commercial front China’s Sinochem has agreed to buy as much as 1.8 million mt/year of LNG from Cheniere Energy under a long-term deal.
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  • It operates Sabine Pass Liquefaction in Louisiana and Corpus Christi Liquefaction in Texas.
  • Some 4 million mt/year of the supply, for a 20-year term, will come from Venture Global’s proposed Plaquemines LNG export facility to be built south of New Orleans.

China’s Sinochem has agreed to buy as much as 1.8 million mt/year of LNG from Cheniere Energy under a long-term deal as reported by S&P Global Platts.

Commercial agreement

The agreement, disclosed by Cheniere on Nov. 5, is the latest in a flurry of fixed-fee term commercial agreements inked in recent months between US exporters and Chinese counterparties, amid a spot price spike in Europe and Asian end-user markets.

The customer will purchase an initial amount of around 900,000 mt/year in July 2022, according to the agreement between Sinochem and Cheniere’s marketing business.

Cheniere did not specify whether the quantities would be assigned to a single liquefaction facility or shared among many.

Sabine Pass Liquefaction in Louisiana and Corpus Christi Liquefaction in Texas are two of its facilities.

It operates Sabine Pass Liquefaction in Louisiana and Corpus Christi Liquefaction in Texas.

It plans to authorise a midscale expansion of up to 10 million mt/year at its Texas facility next year.

Signing of subsidiary

The Sinochem contract comes after Cheniere announced on October 11 that a subsidiary of China’s ENN Natural Gas had signed a 13-year deal with the US exporter to acquire 900,000 mt/year of LNG commencing in July 2022.

Only a tiny portion of the agreement is in force, with shipping on the rest beginning in 2023.

Venture Global LNG has also been busy securing long-term supply agreements with Chinese consumers recently.

The supply will come from Venture Global’s projected Plaquemines LNG export facility, which will be built south of New Orleans, and will last for 20 years.

Sinopec estimated the commitment at 3.8 million metric tonnes per year.

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Source: S&P Global Platts

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