The Strategist

U.S. Cheniere to supply million tons of LNG to Thailand annually

07/27/2022 - 10:04

According to Cheniere’s press statement, the company will be providing Thailand's state-owned energy business PTT with one million tons of LNG yearly starting in 2026 for a period of 20 years.

Cullen College
Cullen College
According to the release, "Cheniere Energy, Inc. announced today that its subsidiary Corpus Christi Liquefaction has entered into a long-term LNG sale and purchase agreement with PTT Global LNG Company Limited, a subsidiary of PTT Public Company Limited, Thailand's largest publicly traded multinational energy company."

PTT has agreed to buy 1 million tons of LNG annually from Cheniere's subsidiary for 20 years commencing in 2026 under the terms of the sale and purchase agreement. The agreement calls for both ship-to-ship (DES) and free-on-board (FOB) deliveries.

The contract's indexing of the LNG purchase price to the Henry Hub natural gas distribution and transportation hub price includes a fixed liquefaction fee. The entire annual receiving capacity of PTT's LNG regasification terminals will rise to 19 million tons by the end of this year.