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CPC Corporation, Taiwan and Cheniere Enter into a 25-year LNG Sale and Purchase Agreement.

CPC Corporation, Taiwan and Cheniere  Enter into a 25-year LNG Sale and Purchase Agreement.

 

August 11 2018

 

CPC Corporation, Taiwan (CPC) announced that effective August 11th 2018, it has entered into a liquefied natural gas (LNG) Sale and Purchase Agreement (SPA) with the U.S. largest LNG exporter Cheniere Energy Inc.’s subsidiary Cheniere Marketing International LLP (“Cheniere Marketing”),. Under this SPA - negotiated on the basis of a Heads of Agreement (HOA) signed in June this year - CPC will purchase 2 million tons per annum of LNG for a term of 25 years beginning in 2021.

 

CPC Chairman Tai Chein remarks that the LNG industry sees Qatar, Australia and the USA as the coming three main pillars of the global LNG exporting. CPC has been importing substantial volumes of LNG each year from Qatar and Australia, so this SPA represents not only a step up in the volume of LNG imported into Taiwan from North America but also a strengthening of the long term cooperation between CPC and Cheniere, the key U.S. energy company involved in LNG projects. Most importantly, it helps to further achieve the diversification of LNG sources and stability of energy supply into the Taiwan market that are among CPC's key objectives.

 

Chairman Tai also expresses his confidence and gratification of CPC’s entering into this long- term agreement with Cheniere. Although Cheniere is new LNG exporter, it has proven to hold track records in its LNG supply capability and reliability. Cheniere currently owns and operates the Sabine Pass LNG Plant in Louisiana, the largest US LNG export facilities, will have 6 liquefaction trains capable of producing 27 mtpa. In addition, Cheniere is developing, constructing, and operating liquefaction projects near Corpus Christi, Texas with 3 liquefaction trains capable of producing 13.5 mtpa.

 

Both parties will participate in a ceremonial celebration of the SPA at Cheniere’s headquarters in Houston on August 19th, 2018.