FILE PHOTO: PetroChina’s logo is seen at a petrol station in Beijing, China, March 21, 2016. Picture taken March 21, 2016. REUTERS/Kim Kyung-Hoon
FILE PHOTO: A sign of U.S LNG company Cheniere is seen at the registration counter at the International Conference & Exhibition on Liquefied Natural Gas (LNG2019) in Shanghai, China April 1, 2019. REUTERS/Stringer
Cheniere Energy Inc said it would sell liquefied natural gas (LNG) to a unit of PetroChina Co Ltd until 2050, the longest supply deal for the top U.S. LNG exporter.
Demand for U.S. natural gas has jumped in recent months as countries around the globe speed up a shift to the cleaner-burning fuel and Europe tries to wean itself off Russian energy.
The agreement on Wednesday marks Cheniere’s fifth this year, with the company previously striking deals with energy giants Chevron and Equinor.
Cheniere’s LNG unit will supply 1.8 million tonnes per annum (mtpa) to a subsidiary of PetroChina. Deliveries will begin in 2026 and reach the full volume in 2028.
Half of the total volume is subject to Cheniere making a positive final investment decision to construct additional liquefaction capacity at its Corpus Christi LNG Terminal in Texas beyond the seven-train Corpus Christi Stage 3 Project.
Cheniere last month approved an $8 billion expansion of the Corpus Christi plant and signaled that further expansions could be in store.