More SPAs signed

Thursday, 04 August 2022
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Both Cheniere and NextDecade have signed long term sale and purchase agreements (SPAs) recently.

For example, Cheniere Energy’s subsidiary, Corpus Christi Liquefaction has signed a long-term LNG SPA with PTT Global LNG Co Limited (PTTGL), a wholly-owned subsidiary of Thailand’s largest state-owned, multi-national energy company.

Under the SPA, PTTGL will purchase 1 mill tonnes per annum of LNG from CCL for 20 years beginning in 2026. Deliveries will be a combination of free-on-board (FOB) and delivered ex-ship (DES).

This customised structure represents a further evolution in Cheniere’s commercial offerings tailored to the specific needs of LNG customers worldwide, Cheniere said.

The purchase price will be indexed to the Henry Hub price, plus a fixed liquefaction fee.

“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. 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 mill tonnes per annum by 2030. By the end of this year, PTT’s LNG receiving terminals will be able to accommodate regasification capacity up to 19 mill tonnes per year with our new terminal,” said Auttapol Rerkpiboon, PTT’s President and CEO.

As for NextDecade Corp, the company has executed a 20-year SPA with ExxonMobil LNG Asia Pacific (EMLAP), an ExxonMobil affiliate.

LNG will be supplied from NextDecade’s Rio Grande LNG export project (RGLNG) at Brownsville, Texas.

Under the SPA, EMLAP will purchase 1 mill tonnes per annum of LNG. The LNG will be supplied from RGLNG’s first two trains, with the first train expected to start commercial operations in 2026.

Based on current expected demand for LNG and assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision (FID) on up to three trains on RGLNG in the second half of 2022, with FIDs of its remaining trains to follow. 

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