Cheniere Energy Inc. (Cheniere) announced that its wholly owned subsidiary, Corpus Christi Liquefaction LLC (CCL) has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with PTT Global LNG Company Limited (PTTGL), a wholly owned subsidiary of PTT Public Company Limited (PTT), Thailand’s largest state-owned, multinational energy company.
Under the SPA, PTTGL has agreed to purchase 1 MTPA of LNG from CCL for 20 years beginning in 2026. The SPA calls for a combination of free-on-board and delivered ex-ship deliveries. This customized structure represents a further evolution in Cheniere’s commercial offerings. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.
“We are pleased to enter into this 20-year SPA with a subsidiary of PTT, the state-owned oil and gas company of Thailand which developed, owns, and operates Thailand’s first LNG import terminal, and is an energy player in a key, fast-growing Southeast Asian market,” said Jack Fusco, Cheniere’s President and CEO. “This is the first direct LNG contract from a US LNG producer for PTTGL, and this agreement not only reflects the critical need for long-term, reliable LNG supply across the globe, but also the important role LNG has to play in powering growing economies for decades to come.”
“Our new vision, Powering Life with Future Energy and Beyond, reflects the strategic direction and business transition toward clean energy as well as new businesses,” said Auttapol Rerkpiboon, PTT’s President and Chief Executive Officer. “LNG or gas is a major transition fuel which supports both energy security and sustainability. Our ambition is to move forward with the future energy while ensuring energy security. We actively engage in the LNG business and target to be a global LNG player by managing an LNG portfolio of 9 MTPA by 2030. By the end of this year, PTT’s LNG receiving terminals will be able to accommodate regasification capacity up to 19 MTPA.”