Cheniere Energy Inc. said Friday it has reached a deal with China’s Sinochem Group Co. Ltd. to supply 0.9 million metric tons/year (mmty) of liquefied natural gas (LNG) beginning in July 2022. 

The state-owned chemical conglomerate would buy LNG under the sales and purchase agreement (SPA) for a term of 17.5 years. Its purchases would eventually increase to 1.8 mmty, Cheniere said, without providing a timeline. Sinochem would purchase the LNG on a free-on-board basis at prices indexed to Henry Hub, plus a fixed liquefaction fee.

“The SPA further reinforces our commercial momentum, and once again confirms the strength of the global LNG market and the global call for investment in additional LNG capacity, including our Corpus Christi Stage 3 project,” said Cheniere CEO Jack...