Sinochem Group Signed An LNG SPA with Cheniere Contributing to "Dual Carbon" Targets




Sinochem Group
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On 5th November, Sinochem Group entered into a 17.5-year liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Cheniere Energy, Inc. ("Cheniere"). Under the SPA, Sinochem has agreed to purchase an initial volume of 0.9 million tonnes per annum ("mtpa") beginning in July 2022, which incrementally increases to 1.8 mtpa.

The LNG is currently the best choice for realizing "green and low-carbon development" and the key energy for achieving the goal of "carbon emissions peaking" and "carbon neutrality" ("dual carbon" for short). Currently, there is still a huge gap to meet the strong gas demand in China which will  become the world's largest LNG importer. The purchase of LNG is an important initiative for Sinochem Group, in accordance with the 14th five-year-plan, to ensure safe supply of energy , to pursue transformation and upgrading of the energy industry, and to advance green innovation and development, with a view of working towards the "dual carbon" goal. 

Sinochem Group has been all along adhering to the principle of "In Science We Trust". Underpinned by its rich experience and operation strengths in international trade, based on the overseas trading arms of Sinochem Oil Co., Ltd. which is wholy owned by Sinochem Energy, the company has established close cooperative relations with national oil & gas producers from major production countries as well as international oil majors over the years. Looking forward, Sinochem Group will strive to develop the natural gas business around the world, and to advance the steady growth of its energy business on the path of sustainable development powered by scientific development and innovation.