Cheniere pens binding LNG supply deal with China’s Foran Energy

US LNG exporting giant Cheniere said it has signed a binding 20-year LNG supply deal with Chinese independent gas firm Foran Energy.

The SPA follows a heads of agreement signed between units of Cheniere and Foran in November of 2020.

Under the deal, Foran has agreed to buy about 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.

Also, the Henry Hub-linked LNG deal would include a fixed liquefaction fee, Cheniere said in a statement on Wednesday.

This new contract adds to four LNG supply deals Cheniere revealed in the last couple of months. These include contracts with France’s Engie, China’s Sinochem GroupGlencore, and a unit of Chinese independent gas distributor ENN.

Cheniere’s chief executive Jack Fusco said 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.”

“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,” he said.

Cheniere did not say whether the volumes would come from its 30 mtpa Sabine Pass plant, which just started producing LNG at the sixth train, or the Corpus Christi facility.

Fusco previously said that Cheniere expects to take a final investment decision on the Corpus Christi Stage 3 project next year.

The Corpus Christi project would include up to seven mid-scale liquefaction trains with a total expected nominal production capacity of about 10 mtpa.

Located in Texas, the Corpus Christi liquefaction plant currently consists of three operational trains with each having a capacity of about 5 mtpa.

- Advertisements -
spot_img

Most Popular

Baker Hughes bags contract for second Pluto LNG train

US energy services firm Baker Hughes has won a contract to supply equipment for the expansion of Woodside's Pluto...

Petrobras transfers Bahia LNG ops to Excelerate Energy

Brazil’s state-owned energy firm Petrobras said it has transferred operations of the Bahia LNG terminal to Texas-based floating LNG...

Hudong, COSCO ink deal for three new LNG carriers

Chinese shipbuilder Hudong-Zhonghua has officially signed a deal with compatriot shipowner COSCO and a unit of energy giant CNPC...

More News Like This

Cheniere: sixth Sabine Pass train produces first LNG cargo

US LNG exporting giant Cheniere said it has produced the first LNG cargo from the sixth production train at...

EIA says US will have world’s largest LNG export capacity in 2022

The Energy Information Administration says US LNG export capacity would become the world’s largest next year after the launch...

Cheniere says 6th Sabine Pass train produces first LNG

US LNG export firm Cheniere said it has started producing LNG from the sixth production train at its Sabine...

Top 5 news of the week November 8-14

LNG Prime brings you the five most-read news on our platform during the week of November 8-14, 2021. 1) State-run...