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Home > News & Events > CPC enters into a Heads of Agreement with Cheniere Energy, Inc. of the USA for the purchase of liquefied natural gas over a 25-year period

CPC enters into a Heads of Agreement with Cheniere Energy, Inc. of the USA for the purchase of liquefied natural gas over a 25-year period

CPC enters into a Heads of Agreement with Cheniere Energy, Inc. of the USA for the purchase of liquefied natural gas over a 25-year period

2 July 2018

 

On 20th June in Washington DC, CPC entered into a Heads of Agreement (HOA) with Houston-based Cheniere Energy, Inc. for the annual purchase of 2.0 million tons of liquefied natural gas (LNG) over a 25-year term. CPC was represented in the signing ceremony by Ms. Jane Liao, CEO of its Natural Gas Business Division, while Mr. Anatol Feygin, Executive Vice President and Chief Commercial Officer, signed on behalf of Cheniere. The signing was respectively witnessed by CPC’s Chairman Mr. Tai Chein and Mr. Jack A. Fusco, President & CEO of Cheniere, together with representatives of the Taipei Economic and Cultural Representative Office in the US capital and of the Bureau of Foreign Trade under Taiwan’s Ministry of Economic Affairs (MOEA).

 

CPC views this HOA as furthering not only its cooperation with Cheniere in particular but also with efforts to expand LNG exports from North America generally. Moreover, that this 25-year purchase agreement was signed when Mr. John Chen-Chung Deng, Minister without Portfolio in Taiwan’s Executive Yuan (its Cabinet) was in Washington at the head of a delegation to a US inward investment symposium (The US Investment Summit), not only reinforced the sense of forming a long term partnership with Cheniere but also served to emphasize the already strong trade relationship between Taiwan and the USA.

 

Cheniere is now the USA’s largest LNG exporter, by virtue of its Sabine Pass plant in Louisiana being the country’s biggest such facility. That position will be strengthened when another two production lines (or trains), now under construction at its Corpus Christi LNG complex in Texas, begin commercial operation next year - and again when a just-announced third one comes on stream later.

 

Note: In the LNG industry, ‘entering into an HOA’ means that the key elements of the agreement between the two parties will have been already settled; and that negotiations will soon begin on the long-term LNG sale and purchase agreement (SPA).