US-based Cheniere Energy has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with Thailand’s largest state-owned, multinational energy company, PTT.
The deal will see a PTT subsidiary buy 1 mtpa of LNG for 20 years beginning in 2026 and calls for a combination of free-on-board and delivered ex-ship deliveries.
The New York-listed Cheniere said the customised structure represents a further evolution in its commercial offerings tailored to the specific needs of LNG customers. The purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee.
“This is the first direct LNG contract from a US LNG producer for PTT, and this 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,” said Jack Fusco, Cheniere’s president and CEO.
PTT developed, owns, and operates Thailand’s first LNG import terminal.
“We actively engage in the LNG business and target to be a global LNG player by managing an LNG portfolio of 9 mtpa by 2030. By the end of this year, PTT’s LNG receiving terminals will be able to accommodate regasification capacity up to 19m tons per year with our new terminal,” stated Auttapol Rerkpiboon, PTT’s president and chief executive.
According to the Energy Information Administration (EIA), the US, averaging 11.2 bcf/d became the world’s top LNG exporter during the first half of 2022, increasing exports by 12% compared to the same time last year.