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Thailand has signed its first long-term US LNG contract. Under the deal, Cheniere Energy is to supply 1mn t/y from its Corpus Christi export terminal to Thailand’s state-owned PTT for 20 years, starting in 2026.
The sale and purchase agreement (SPA) calls for a combination of free-onboard (FOB) and delivered ex-ship (DES) deliveries,* a customised structure representing a ‘further evolution in Cheniere’s commercial offerings tailored to the specific needs of LNG customers around the world’ says the US company. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.
PTT developed, owns and operates Thailand’s first LNG import terminal, and is ‘an energy leader in a key, fast-growing south-east Asian market’, according to Jack Fusco, Cheniere’s President and CEO. Claiming that this is the first direct LNG contract from a US LNG producer for PTT, Fusco says the 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’.
Cheniere plans to be a global LNG player, and aims to be managing an LNG portfolio of 9mn t/y by 2030.
Meanwhile, PTT’s LNG receiving terminals will be able to accommodate regasification capacity up to 19mn t/y by the end of the year, according to Auttapol Rerkpiboon, PTT’s President and CEO.
Last month, Cheniere Energy entered into a long-term LNG SPA with a subsidiary of PetroChina, which is to take up to 1.8mn t/y of LNG on a FOB basis. Deliveries will begin in 2026, reach the full 1.8mn t/y in 2028, and continue through 2050. Some 0.9mn t/y covered by the agreement is subject to Cheniere making a positive final investment decision (FID) to construct additional liquefaction capacity at the Corpus Christi LNG terminal beyond the seven-train Corpus Christi Stage 3 project.
The SPA increases Cheniere’s long-term sales to PetroChina to approximately 3mn t/y.
Meanwhile, more recently in the US, Cheniere Energy subsidiaries Sabine Pass Liquefaction (SPL) and Cheniere Marketing have each entered into long-term LNG SPAs with Chevron.
Under the first SPA, Chevron has agreed to purchase approximately 1mn t/y of LNG from SPL on a FOB basis. Deliveries will begin in 2026, reach the full 1mn t/y during 2027 and continue until mid-2042. Under the second SPA, Chevron has agreed to purchase approximately 1mn t/y of LNG from Cheniere Marketing on an FOB basis with deliveries beginning in 2027 and continuing for approximately 15 years. As with the PetroChina deal, the Cheniere Marketing SPA is subject to Cheniere making a positive FID relating to additional liquefaction capacity at the Corpus Christi terminal.
*Free onboard (FOB) is the point in the supply chain where the seller relinquishes ownership, and the buyer accepts ownership of products purchased in a specific transaction. Delivered ex ship (DES) means the seller fulfils their delivery obligation when the non-cleared goods have been delivered to the buyer aboard the vessel in the designated port of destination. The seller bears the full risks and costs in connection with the transport to that port of destination.