U.S. energy firm announces LNG export deals with China

The Oak Spirit liquefied natural gas (LNG) tanker arrives at Chubu Electric Power Co.'s Joetsu thermal power station in Joetsu, Niigata, Japan, on Friday, Jan. 6, 2017. Jera Co., a joint venture between Tokyo Electric Power Co. Holdings Inc. and Chubu Electric Power Co., received its first LNG cargo from Cheniere Energy Inc.s Sabine Pass terminal. [Photo: VCG]

U.S. firm Cheniere Energy announced Friday that it has struck two long-term deals to sell liquefied natural gas (LNG) to China National Petroleum Corporation (CNPC).

According to the announcement, the Houston-based energy company will sell about 1.2 million tons of LNG a year to CNPC, as part of two sales agreements that extend through 2043. Shipments will begin this year.

"We are pleased to announce these LNG contracts with China National Petroleum Corporation, an important global energy player in one of the largest and fastest growing LNG markets worldwide," said Jack Fusco, Cheniere's president and CEO, in a statement.

The statement said that the deals are based on the Memorandum of Understanding (MOU) it signed with the Chinese company last November. "We look forward to a successful long-term partnership with CNPC," said the statement.

During U.S. President Donald Trump's first visit to China in November, Cheniere Energy signed an MOU with CNPC for long-term LNG sales and purchase cooperation.

As the owner of the first LNG export terminal in the United States, Cheniere Energy is the leading exporter of U.S. liquefied natural gas.