On Friday, Cheniere Energy, Inc. announced a long-term LNG supply agreement it signed with China’s Sinochem.
Cheniere will supply liquefied natural gas (LNG) to Sinopec with an initial volume of 900,000 tpa in July 2022. In the course of 17.5 years, the volume will gradually increase to 1.8 million.
The LNG will be bought on a free-on-board basis for a price indexed to the US Henry Hub, plus a fixed liquefaction fee. The amount of the fee and the source of the product were unrevealed.
