Houston-headquartered Cheniere Energy Inc. reports that its subsidiary, Cheniere Marketing International, LLP has entered into a binding 20-year liquefied natural gas (LNG) sale and purchase agreement with Foran Energy Group Co., Ltd. This follows a preliminary agreement signed in November last year.
Foran Energy Group, formerly Foshan Gas Group Co., Ltd., is one of the fastest growing city gas companies in China primarily engaged in the transmission and distribution of natural gas in the Guangdong region.It has agreed to purchase approximately 0.3 million tonnes per annum of LNG from Cheniere Marketing on a delivered ex-ship basis for a term of 20 years beginning in January 2023.
The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fee.
Cheniere CEO Comments
“We are pleased to finalize this 20-year SPA with Foran that builds upon our relationship. This long-term LNG solution supports Foran’s goals and provides additional supply as China continues to seek cleaner, lower-carbon natural gas to meet its economic and environmental goals,” said Jack Fusco, Cheniere’s President and CEO. “This SPA once again demonstrates the strength of the global LNG market today, particularly in China, and underscores the value of Cheniere’s leading ability to tailor solutions to help our customers advance their long-term energy and environmental priorities.”
Cheniere Energy is the leading producer and exporter of LNG in the U.S. with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery.
Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tonnes per annum of LNG operating or under construction.