Taiwan’s CPC Corp., a major LNG importer and state-owned producer of oil, natural gas, and gasoline, recently announced that it had reached a preliminary deal to buy liquefied natural gas (LNG) from US based LNG producer, Cheniere Energy Inc. under a 25-year sale and purchase agreement (SPA).
CPC and Cheniere exchanged and executed heads of agreement (HOA), a nonbinding precursor to an SPA, in Washington DC. Under the HOA, CPC agreed to buy two million metric tonnes per annum (MPTA) from the major gas exporter, which is gearing up to start exports from its second export plant at Corpus Christi, South Texas.
CPC said in a statement that the agreement would strengthen CPC’s cooperation with Cheniere, especially in the context of the development of LNG liquefaction with export projects in North America. CPC also pointed out that the 25-year agreement symbolises not just the beginning of a long-term collaboration between Cheniere and CPC, but also would provide a crucial step to strengthening the trade relationship between the U.S. and Taiwan.
It was also stated that CPC and Cheniere would continue negotiations toward an LNG SPA over the coming period. Furthermore, Cheniere started the export of LNG in February 2016 from its Sabine Pass terminal in Cameron Parish, LA. And, the company is also planning two more export projects on the Texas coast namely Corpus Christi LNG and Freeport LNG.
Freeport LNG is expected to commence its commercial operations in the second half of 2019 or early 2020. Furthermore, Cheniere reportedly filed a request with the Federal Energy Regulatory Commission in early June for authorization to introduce fuel gas to commission Train 1 at its Corpus Christi Liquefaction (CCL) Project.
Meanwhile, Cheniere issued a final investment decision last month to build a third train at CCL. The first two trains are expected to begin service in 2019.